Interest rates cut by 1.5%

[Grassman]

What we need is resonable fuel prices, food prices, quality transport and fair pricing......all of which is far beyond this or probably any other government!

There is a little bit of good news on the horizon. Because of a worldwide bumper cereal harvest the price of grain is falling sharply. It will take 6- 12 months to filter through but food prices should ease a little.

 

[Wild Goose]

There is a little bit of good news on the horizon. Because of a worldwide bumper cereal harvest the price of grain is falling sharply. It will take 6- 12 months to filter through but food prices should ease a little.

Fig! Just when I was thinkin' of giving up vegatarianism!

 

[paul881]

Problem is there are too many rates which confuses everyone; Libor, BOE rate and Swap rates.

And the banks crying about their position is not to be believed because they are all making good money from "normal" mortgages.

 

[Wild Goose]

For me, Chancellor Brown's hypocrisy in asking mortgage lenders to lower their interest rates is evident from the fact that HMRC's charge for interest on "late" income tax was recently lowered from 7.5% to 6.5% p.a. Bear in mind that "late" payments are all part and parcel of the Self-Assessment tax system - pay by estimate and settle the balance later. The interest rate is not intended to be penal.

Why should any mortgage lender be expected to charge a lower rate of interest than the government?

 

[paul881]

For me, Chancellor Brown's hypocrisy in asking mortgage lenders to lower their interest rates is evident from the fact that HMRC's charge for interest on "late" income tax was recently lowered from 7.5% to 6.5% p.a. Bear in mind that "late" payments are all part and parcel of the Self-Assessment tax system - pay by estimate and settle the balance later. The interest rate is not intended to be penal.

Why should any mortgage lender be expected to charge a lower rate of interest than the government?

Mortgage rates are always lower than other borrowing rates. Remember there are three rates; Libor, BoE and swap rates. Mortgage rates are based on inter-bank swap rates

 

[leemason]

How can Banks possibly reduce mortgage rates when they have the more pressing problem of how to build up the pot of money for next years bonuses. Just watch them. What they have done is to get all of the bad news out of the way this year so that next year they can report how well they have recovered (with our money of course) and award large bonuses to their execs who have successfully steered them through such bad times!