Friday, December 7, 2007

Halifax cuts from 7.75% to 7.50%; Nationwide cuts 7.24% to 6.99%

Mortgage firms react to rate cut

Leading mortgage lenders have responded to the Bank of England's interest rate cut, fully passing it on borrowers. Halifax and Nationwide were the first to reduce their standard rates after the Bank reduced the UK base rate from 5.75% to 5.5%. Passing on the cut in full will knock between £15 and £20 off the monthly repayments on a £100,000 mortgage.

Posted by hpwatcher @ 08:04 AM (1441 views)
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17 thoughts on “Halifax cuts from 7.75% to 7.50%; Nationwide cuts 7.24% to 6.99%

  • It’s called desperation. Anything to try to restore confidence in the housing market.

    Seems strange considering ‘ the fundamentals are underpinning the market ‘.

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  • Dohousescrashinthewoods says:

    I’m amazed to see mortgage rate passed on so quickly and completely. Do they not need the money? Were they pushed? Are they trying to save the market?

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  • rocket robbie says:

    Doest this mean the fixed term deals will go down as well?

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  • £15-£20! Wow – I was down beat about the housing market but with this new found wealth I think I’ll go and take out a 10x mortgage!!

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  • sold 2 rent 1 says:


    Here is the US money supply (debt supply) graph. See how it has leapt to 18pc since the Fed started cutting rates.
    This graph looks like it is exponential.
    18pc growth has a doubling rate of 3.8 years. Think about that.

    The UK money supply dropped from 14pc to 10pc and this was one of the reasons that the IR was cut. So 10pc M3 growth is a problem because it is too LOW.
    If the UK keeps cutting, as I think it will, then watch the money supply surge back up to 15pc or more.

    Guys, it doesn’t matter whether this money (debt) shows up in assets or goods in the shops, what we are witnessing here is the destruction of our currency.
    By destruction I don’t just mean devaluation, I mean proper destruction. The money supply curve is exponential and going vertical.

    This money supply surge is happening throughout the world over.

    400 years of a flawed banking system are finally coming home to roost.
    The banking system has survived, with the odd depression or two, mainly because growing debt exponentially is easy when populations are growing exponentially. The world population is set to peak by 2050 and growth is slowing sharply.

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  • waitingfor hpc says:

    wow – thank you BOE – i will rush and buy my overpriced house now! The market is saved…. spread the word Crash Gordon has spoken … ‘an end to boom and bust’

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  • rocket robbie says:

    s2r1

    if your right, then there seems little point having savings!

    I tottally respect your points of view, you always post intresting articles and have great knowledge of the financial system but i just cant get my head round our monetary system going up in smoke. If you are right then what can people like myself do to protect ourselves??

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  • Libor is down 0.01%, so I don’t see these cuts being passed on much more widely than that. Of course I guess the more significant thing to note from that is that it hasn’t gone up.

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  • Halifax cuts from 7.75% to 7.50%; Nationwide cuts 7.24% to 6.99%

    C’mon guys where is the cut? I beg please explain
    who was on the standard variable rate???

    noone

    it is publicity stunt

    AHHHHHAH AHHAH HAHAHHAHAHH

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  • Our currency started destructing when we no longer made goods in the UK. We are hooked on consumerism – often imported goods made at a fraction of the price they are sold for here.

    If I were arranging the budget, I would allow high tax credits against start up of industry in the UK. Then young people will have a sense of meaning to their lives instead of hanging around and causing problems in city centres.

    As things stand this rate cut (and the next) will only buy a little time for over extended BTLers until the whole country collapses under a mountain of debts. Actually, just enough time to suck a few more unsuspecting flat buyers into a disaster scenario.

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  • sold 2 rent 1 says:

    Gold/gold stocks is a good option to protect wealth.

    “The greatest shortcoming of the human race is our inability to understand the exponential function.”
    Professor Albert Bartlett

    “i just cant get my head round our monetary system going up in smoke”

    Since the dawn of time we have been on an exponential curve of change.
    There is no evidence that this exponential curve of flattening.
    People who lived in 1870 would never imagined that we could fly planes
    People who lived in 1940 would never have imagined being able to fly to the moon.

    The future is always unimaginable
    The flaw in the banking system is being exposed as the world population levels off.
    The economic hardship that this will bring will guarantee a huge level of change.

    Watch these you tube videos that explains exponential change very well and may help you plan for the future.
    http://video.google.co.uk/videoplay?docid=-8689261981090121097&q=mayan+calendar+comes+north&total=7&start=0&num=10&so=0&type=search&plindex=1
    http://video.google.co.uk/videoplay?docid=-567329528148516232&q=mayan+calendar+comes+north&total=7&start=0&num=10&so=0&type=search&plindex=0

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  • sold 2 rent 1 says:

    “Actually, just enough time to suck a few more unsuspecting flat buyers into a disaster scenario.”

    There is a very small chance if IRs are cut fast enough, then the world housing bubbles could be reflated for a very short time indeed.
    The US might manage it. Europe probably won’t.

    As a k-wave theorist, I am convinced that this is the last k-wave cycle as the k-wave only exists because of the debt-based banking system.
    The K-winter should have started in 2000 but it was saved by 1pc IR.
    Could it be saved again by cutting IR to 0.01pc – there is a very small chance.

    Either way, global hyperinflation or global deflationary depression, the end result is fiat currency destruction.

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  • Rentinginthesouth says:

    s2r1? and the date of the k-wave vertical spike? 2012 by any chance?

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  • Clearly natural resources are finite and can be measured in physical units, so usage cannot increase exponentially. But share indexes, gold prices .. ? I can see no physical limit that prevents these from increasing exponentially.

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  • Happy Mondays says:

    s2r1, if the economic mess is going to be on such a grand scale, do you think that gold will be valuable? And if you are going by the mayan calender which is a powerful message to us all, to get our s##t together ! maybe we should all learn how to grow our own food because gold does not digest that well..Thats a question not an attack s2r1 as i value your understanding on how the market works,i’m just a humble man still trying to workout how the phone works !

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  • Gold is the answer:

    There is an estimated 10 cubic meters of gold stored in vaults in the world. Supply is pretty much fixed (some gold is lost ~ some more is mined), not exponential in growth at least. Gold is also known as a good inflationary bet….

    Some maths:
    Gold density = 19.3 g/cm^3 (wikipedia)
    cm^3/m^3 = 1million (number of cubic cm in a cubic meter)
    10m^3/1m^3 = 1000 (number of cubic meters in a 10 meter cubic block)
    total gold weight = 1000 million cm^3 * 0.0193kg = 19.3 million kg’s of gold
    gold price per kg ~ £12,700
    Total gold value = £245bn

    Stay with me…

    Uk debt ~£1600bn and less than two years ago was £1000bn. Put this in stark constrast to the price of gold (a more reliable indicator of stored value) and soon one realises that gold is undervalued and money is worthless, therefore buy gold asap, before someone clocks on….

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  • sold 2 rent 1 says:

    Growing your own food is not a bad idea.

    I am not a big fan of exact dates planning but we can expect a big low in economic terms between 2011-2014.

    Here are just a few graphs I have collected in the last year








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