Wonder who'll pass it on??!!

Happy days. (for now).

 

Fucking superb news.

My mortgage is now down to 297 quid, when previously, at the start of this year it was 728!

 

Good news but I wonder how long it'll last....

 

Im personally thinking we'll see another .5% before the end of the year, and that it will stay down below 3% of at least a couple of years.

But maybe thats just wishful thinking

 

Wont make fook all difference to us poor first time buyers though . Halifax have upped the rates for us since the last cut!!!!!!!!!

 

It's OK, but for those of us not on a Tracker or a deal, we're stuck in the unknown! LOL.

We're riding the standard variable rate for now. I know there are FAR worse positions to be in, but I'll be happy when we can secure a good deal for some certainty.

 

Im on a buy to let tracker for 25 years at .49% above baserate, with no minimum rate, so every cut is money straight in my pocket at the moment

 

0.49% is awesome. Shame there's nothing even close to that at the moment.

4.5% fixed is about as good as its gets really as far as we can see.

We're on 4.69% standard variable rate prior to this latest cut.

 

Our mortgage is on a fixed rate until 2011


Brian

 

As I said last time, we were literally DAYS away from signing a 3-year deal at almost 6%.

 

Yeah I consider myself lucky to be on that rate, especially for the full loan term.

I was on a deal of .39% for 5 years on a 25 year loan, but I decided that I would renogotiate a couple of years ago as I had a feeling it might be a good plan longer term (didnt expect it to do what it has done of course though no one could have predicted that!)
So we had a chat and agreed on an extra 0.1% in exchange for extending the tracker period, which cost me an extra 12 quid a month.

Best money ive EVER spent I reckon!

 

bad news for savings tho

 

My divorce mortgage was a tracker, had a hell of a job to get any mortgage in the property boom period,lenders don't like divorces.shortly after paying her out the BOE were putting rates up worried about the inflation rate.How things have changed and so quickly.It appears my tracker was only for a 2 year term now it switches to variable which I am stuck with.Their new offers were 6.4% with a 4k arrangement fee or do nothing and it switches to 5.19 variable .Guesss what I did lol.
Don't worry guys the cycle will start all over again the BOE will put the base rate back up and the tax man will think of new taxes before you leave this world.
Born free taxed to death

 

Yeah, rates are going to be very low, and the economy in general is bad news for pension funds which rely largely on economic growth in general etc.

The rate cut is a sign of how fucked things are really, but im quite happy with it personally, well as long as I stay employed at least, lol

 

Chip you should carry on paying 728 if you can penalty free! You wont have for much longer then!

 

No, I have some other things I wish to use the funding for, but yes taking a 5K swipe a year out of the capital would certainly be a good plan longterm if the money didnt have other uses for me right now.

 

if chip is on a interest only then that would be a silly thing polly

 

It is indeed! It's a huge kick in the balls if you're trying to save

 

the biggest kick in the balls with savings is that the interest is taxed and that the rate of inflation is higher than the net interest

 

Yes im on interest only, but I dont think it would be that silly, Im sure what Stu is getting at is I could afford 728 before then I probably still can now (in fact my income has gone up about 8K a year since then so potentially I could afford a bit more) so by paying it off, at least when rates go back up, even if they went past where they were before, Id know my repayments were still going to stay affordable.

Assuming the rates stay down, Im planning on a 20ft * 10ft conservatory onto the back of the house with the profit im making on it, that way I'll pay no tax I believe, although I'll have to look into that to make sure that's the case.

If I get it built in March-May 2010 with staged payments, I can write 4K or so off against each of the two tax years, and that sorts me out for not paying tax until the following (2011-2012) tax year.

Assuming im correct that this would be a valid expense to offset against the earnings. Havent checked yet, will need to speak to an accountant.

 

The goverment do not wnat you to save they wnat you to spend

 

Exactly

 

Indeed, they want the economy stimulated and that means spending.

 

The government has always wanted all your money they even tax you when you are dead on what you have left

 

2 things in life we are all guarenteed tony, death and taxes

 

I do 5 jobs, 1 is for the tax man 1 is for the vat man 1 is for the overheads 1 is for the x wife and 1 is for me fook me I have to do a lot of jobs to get any beer money

 

Chip what is the floor on your tracker most lenders on a tracker have a floor which could be 2.75%

 

And the beer is taxed twice as well, and the bit of it that isnt taxed, is profit for the landlord etc, which is then taxed

 

NO floor on mine mate, if rates go to zero % base rate, I'll be paying under 60 quid a month

 

never seen a mortgage deal like yours chip are you sure,if it is the case I bet they sacked the guys that came up with that deal lol

 

hopefully mine will go down a bit more aswell then, it was 620 fixed rate till sept then rocketed to 900 odd!! then dropped to 860odd when i almost comitted to a new deal!!! but luckly didnt. then it dropped too 668ish last month so fingers crossed it'll drop a bit more. I'm interest only too thou so need to try sort out a repayment deal as soon as poss!! scary times really..........

 

Im 100% positive mate, I checked all the paperwork after the last cut, and then phoned up and got confirmation too.

The C&G (who im with) are one of very few lenders with no floor on their tracker deals.

 

Have the C&G been bailed out by the tax payer yet then lol

 

aha so you escaped that then? phew!

i chose the 4.84% fixed 7yr option. i think it'll work out perfectly

 

They are part of lloyds, so essentially yes from what I gather.

 

im saving more than alot pay on a mortgage so it affects my saving alot
the only good news is when i buy another house ill get a decent interest rate

 

Most of the new deals are nowhere near as good as older ones sadly, so the rate you get wont fully reflect the base changes.

My 0.49% tracker for example, things like that just dont seem to be on offer anywhere currently

 

in about the same boat as you Christian. 2 year fixed ran out last month and we went on the standard variable rate at a lower rate than we had previously fixed at. that will now be even lower hopefully but the key will be knowing when to and finding a good deal to fix again before the upturn.

in the scheme of things, a 4.5% fixed is a cheap loan really.

 

4.5% is still a really good deal long term IMHO.

If the banks make such loans available common place, I'd imagine how prices will have to start going back up, assuming they dont insist in massive equity.

(for example, 200K house would cost only 9K a year for an interest only mortgage, 750 a month, which is as cheap as renting one)

 

I'm fairly sure we'd fix at 4.0-4.5%, but will sit tight for now. No real hurry I don't think. We'll see what this latest drop brings in terms of fixed-rate deals.