Interest rate cut

[HeyWayne]

I don't ever recall having seen a 1.50% rate cut!

Come on economy - pick up!!

[Nicos]

well...our mortgage rate has dropped!

[smallblueplanet]

Excellent news - we've got a tracker mortgage!

[HeyWayne]

Excellent news - we've got a tracker mortgage!

I heard a couple of banks have withdrawn them from the product portfolio this morning - can't recall who.

[nelliegemini]

Listening to the Channel4 news it seems the only way your mortgage will benefit is if you do still have a tracker. Seems the banks are using the reduced rate for lending to each other, but might not pass it on in full (so half a percent again peeps).

[HayleyB]

It'll only help if the banks start reasonable lending again, BUT............

[HeyWayne]

Listening to the Channel4 news it seems the only way your mortgage will benefit is if you do still have a tracker. Seems the banks are using the reduced rate for lending to each other, but might not pass it on in full (so half a percent again peeps).

LIBOR (London Inter-Bank Offer Rate - I think) rate and Bank of England Base rate are two different things as I understand it. Therefore a drop in the base rate isn't reflected in the LIBOR rate.

I don't pretend to understand it fully - LadyWayne tries to explain banking stuff to me all the time.

[flowerofshona]

No sign of any reduction from this one or the last one alliance and leicester are quick enough to put it up !!!!

[smallblueplanet]

Phew that was close!!!

I've just checked our tracker mortgage details and as far as I can see the 'floor' for it continuing our current tracker rate is BoE repo rate of 3%! If the rate had fell below 3% then our lenders Abbey would have been able to increase the tracking differential....wow that was close, cos the small print also says that they wouldn't have had to change back any tracking differential they'd changed if the BoE rate went back to 3% or above!!! That last sounds a bit of a con! Fingers crossed the rate doesn't drop anymore then.

[HayleyB]

Banks can choose to pass on the rate or not, unfortunately they are stabilising their own coffers at the moment.

To get the economy back on kilter they need to start lending again, which they are loathe to do. The BoE have reacted with a 1.5% in an attempt to reinstall confidence in the ftse which had a fall yesterday only proving the wobbly economy, when the value of sterling increases more to normal levels (long way to go)and shares stabilise will banks start to lend and pass on savings in a more meaningful way. Then we can say we are pulling out of the recession.

[zanussi101]

I've just seen the ITV news about this- talk about scare-mongering! The newsreader was really trying to badger the politician he was interviewing into saying that this is a last ditch attempt to save us all from economic ruin. I'm sure things wouldn't be half as bad if the media weren't constantly exaggerating the problem.

[Mikey]

Well I won't see a benefit as I'm on a fixed rate, currently 2.5% above Base rate.

Oh well mustn't grumble.

[Matt.]

Apparently loads of banks are now pulling their tracker products. I.e. you can't sign up. Its ok if you are already a customer though

[beefy]

Looking better and better for me as I may wish to borrow about £100,000 soon to start my own business.The lower the rate the better.

[tootles]

It's all very well the rates dropping - but what about those of us with the foresight to sell up before the crash!!!!