Monday, Nov 03, 2008

Abbey/Nationwide raise their tracker mortgage rates prior to expected Base Rate drop

Moneymarketing: Lenders hike up trackers yet again

Abbey and Nationwide have raised their tracker mortgages on the eve of an imminent Base Rate drop. Nationwide revealed a maximum 0.4 per cent hike in trackers on Friday, and now Abbey has followed suit with a 0.5 per cent. Lenders attracted criticism last month after they put up trackers for new borrowers straight after the Bank of England lowered Base Rate. They have now repeated the strategy just before Monetary Policy Committee could reveal a very probable Base Rate drop by as much as 1 per cent, according to some economists.
Abbey says this move is a response to competitor moves, and means its 85 per cent tracker has been removed, and its 60 and 75 per cent tracker is now 0.5 per cent higher.

Posted by jack c @ 07:43 PM (2324 views)
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24 Comments

1. malct said...

debt is the problem, not the solution

Monday, November 3, 2008 08:10PM Report Comment
 

2. malct said...

why the pre-occupation with encouraging the 'banks' to 'lend' to each other, consumers, businesses and speculators?

Monday, November 3, 2008 08:12PM Report Comment
 

3. Fjcruiser said...

banks are insolvent.

Monday, November 3, 2008 08:16PM Report Comment
 

4. malct said...

when they create the debt based money supply

they don't create the interest

so the interest has to come from the wealth we generate

anyone know how much we have paid since 1694 in interest?

no, I thought not!

neither do I.

did you know when the national debt was set up, the deal was we never had to pay it back?

we haven't - we just keep paying the interest

look shipmates, if I loose my password realtime connection here again it will be most probably be for ever this time

our webmasters do a really great job but they are under pressure - these are very very special times

don't underestimate the importance of freedom of expression on this website

it is a unique priveldge - but it is monitored - obviously.

Monday, November 3, 2008 08:26PM Report Comment
 

5. mark said...

they are simply after more profit to build their books up.......

Monday, November 3, 2008 08:28PM Report Comment
 

6. renting2 said...

The whole economic system is based on inter-bank lending. Is inter-bank competition therefore a total fiction?

Monday, November 3, 2008 08:33PM Report Comment
 

7. renting2 said...

Hey malct - we'd all miss ya. So you keep going!!!!!!!!!!!!!!!!!

Monday, November 3, 2008 08:34PM Report Comment
 

8. planning4acrash said...

Renting2, the system is based on fractional reserves, interbank lending is to maintain reserve ratio's. Banks below reserve borrow from those above. Central banks reduce interbank rates by providing cheaper credit via lower base rate+liquidity injections.

Monday, November 3, 2008 08:58PM Report Comment
 

9. renting2 said...

p4ac - understood, but question still stands.

Monday, November 3, 2008 09:03PM Report Comment
 

10. planning4acrash said...

To answer your question. Fractional reserve banking is fiction/fraud, so is interbank lending, so is central b(w)anking. The only true system is banking of savings on 100% reserves of tradeable commodities, be it wheat, copper or gold,free market decides.

Monday, November 3, 2008 09:05PM Report Comment
 

11. malct said...

renting2 - thank you - I've no intention of giving up but I realise how easy it is for Vi's to silence dissent.

Keep asking awkward questions only those with genuine love for family, friends and humanity will stand the test.

uh oh, now what have I said?

save the file quick ! lol etc

Monday, November 3, 2008 09:06PM Report Comment
 

12. planning4acrash said...

In the system I suggest, you get return based on productivity of business invested in, a current account today yields a percentage of real inflation, a cut from the mass derivatives trade, always leaving you behind the curve. Capitalism requires 100% gold

Monday, November 3, 2008 09:12PM Report Comment
 

13. malct said...

renting2 - Is inter-bank competition therefore a total fiction?


imho - total fantasy

there is no left wing - right wing

labour - conservative

republican - democrat

fascist - communist

it's a huge sick joke at our expense

but it is so, so clever, it is probably much, much too late to do anything at all about it - unless you know different!

This site is monitored for insecurity and straining purposes

don't tell your mother, she won't believe you.

Monday, November 3, 2008 09:14PM Report Comment
 

14. renting2 said...

p4ac - are you agreeing that inter-bank competition is a fiction? Cos that's what I'm saying.

Monday, November 3, 2008 09:15PM Report Comment
 

15. malct said...

just in case any newcomers are reading this thread

please remain calm

we are a small % of the populace and totally harmless

Monday, November 3, 2008 09:16PM Report Comment
 

16. planning4acrash said...

I forgot to add, that central banks always stand in to act as lender of last resort when all banks are below reserve, i.e. When the system becomes bankrupt, as ponzi schemes always do. You must listen to podcasts 1 & 17 on lewrockwell.com learn in 10mins.

Monday, November 3, 2008 09:18PM Report Comment
 

17. renting2 said...

p4ac - yep, you were the one that educated me on that! My reading of your reply is that you agree, whether it be systemic or purposeful.

Monday, November 3, 2008 09:27PM Report Comment
 

18. little professor said...

Sigh.

When I saw there were 17 comments on this article, I expected there might be some good debate going on, or at the very least some vague reference to the story in question. But no, it turns out to be just malct and p4ac spewing their conspiracy dross again. Please, take it to another site, boys.

Monday, November 3, 2008 10:14PM Report Comment
 

19. planning4acrash said...

Little Prof, I am discussing Libertarian, Austrian School economics, conspiracy occurs when two or more people conspire to do something for their own benefit against somebody elses, WMD's in Iraq we a conspiracy theory, the term has been hijacked and converted into Orwellian newspeak, where we cannot use the word conspiracy, and therefore cannot think in those terms, but we see doublethink where, whilst we can't use the word conspiracy, its fine to be against the bailout if the TV tells you that it could be questionable. You should read 1984 by George Orwell.

Renting2, we are agreed. I understood that you had questions, I was trying to answer why interbank loaning is a fraud and farce. I am overjoyed that you have gained that insight from me. Hopefully you can join the infowar and teach more, who will teach more, who will teach more, all of whom will join hands and go on to create freedom and prosperity!! - I'll be adding a page on the meetup thingie with links to all the sites I use for info. Will post when its done, prob tomorrow.

Monday, November 3, 2008 11:39PM Report Comment
 

20. Holycows said...

little professor: I agree - really disappointed to read this pile of twaddle.

planning4acrash: your response [19] epitomizes my point.

Tuesday, November 4, 2008 06:56AM Report Comment
 

21. techieman said...

This is clearly a self-enforcing spiral. The banks need to increase capital ratios and because of competition they will only lend at big profits to them. Individually this makes sense but en bloc - just as easy credit fuels price increase so contraction of credit fuels the opposite. Nothing new there to members of this site... BUT of course when they contract credit they create (or maybe just extend - as prices would probably have declined anyway) asset price deflation which then means that they look to cull the poorly performing loans (i.e. they repossess to take back the loans on properties which are depreciating). Of course that increases downside pressure and you have a spiral. As long as competition reigns supreme it becomes a race to the bottom. Like a game of monopoly. How to stop it? You either stop it when it gets to the bottom - when prices stabilise at the lower levels or Govn. steps in and has a real influence over lending policy.

How can govn do that? They cant because the banks have too many assets - more and more of which become non performing. Its along the lines of if you owe the bank 100 you are in trouble if you owe them 5m they are in trouble. Switch the parties round you = bank and bank=govn and multiply the numbers by quite a few zeros and voila.

Tuesday, November 4, 2008 07:32AM Report Comment
 

22. This comment has been removed as it was found to be in breach of our Blog Policies.

 

23. planning4acrash said...

I forgot to add, that, Malct is right in one sense, that the system is created to ensure that we pay interest, not so that we can pay off the debt. What he forgot to add, was that bankruptcy is built into the system, that it is desired, because, the issuer of fiat money (itself not being a real asset) can be used as a weapon to "re"possess real assets, like houses. So you get the boom to cause the misallocations, then the crash, to consolidate wealth and either "re"-possess assets or buy up depreciated assets. Hence the business cycle. We always think from our personal perspective, that the business cycle is bad, and must be a mistake. Of course, from a bankers perspective, the business cycle is positive and engineered, via their influence on the central banks. Government are happy to co-operate, because it keeps check on the wealth of the middle classes to ensure the need for government and to avoid a challenge for the ruling oligarchy.

Tuesday, November 4, 2008 09:44AM Report Comment
 

24. stillthinking said...

Presumably you mean bank employees because the interest is missing from debt holders and ultimately the bank also. In which case, anybody in credit benefits from this system, not just bankers.

Tuesday, November 4, 2008 09:51AM Report Comment
 

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