far Posted February 7, 2008 Share Posted February 7, 2008 That means I save a load of money of my variable rate products Quote Link to comment Share on other sites More sharing options...
ShamelessTT Posted February 7, 2008 Share Posted February 7, 2008 lol sweet! Quote Link to comment Share on other sites More sharing options...
imi Posted February 7, 2008 Share Posted February 7, 2008 Tell me about it...economy isnt doing well at all. Quote Link to comment Share on other sites More sharing options...
jamesmark Posted February 7, 2008 Share Posted February 7, 2008 Will the banks/lenders actually cut them this time though? As the last cut some lenders even increased their rates. Quote Link to comment Share on other sites More sharing options...
far Posted February 7, 2008 Author Share Posted February 7, 2008 Will the banks/lenders actually cut them this time though? As the last cut some lenders even increased their rates. Well I made sure my mortgages are with a companies who update their interest rates - I dont see how some lenders can get away with not cutting there rates in line with BOE Quote Link to comment Share on other sites More sharing options...
razza Posted February 7, 2008 Share Posted February 7, 2008 luckily the new mortgage is a BOE tracker so will go down the same day:d Quote Link to comment Share on other sites More sharing options...
CJ Posted February 7, 2008 Share Posted February 7, 2008 Well I made sure my mortgages are with a companies who update their interest rates - I dont see how some lenders can get away with not cutting there rates in line with BOE I agree. (For JM)-Who are the companies who didn't follow BOE rates? Quote Link to comment Share on other sites More sharing options...
far Posted February 7, 2008 Author Share Posted February 7, 2008 worth noting if anyone is taking up a new mortgage on variable rate you should look at 'trackers' on BOE base rates. Im saving over 2.5k per month Bring on the next cut Quote Link to comment Share on other sites More sharing options...
Thorin Posted February 7, 2008 Share Posted February 7, 2008 Is this one of those, "look at me I'm rich" threads? Quote Link to comment Share on other sites More sharing options...
CJ Posted February 7, 2008 Share Posted February 7, 2008 Is this one of those, "look at me I'm rich" threads? Not if you are looking in my direction. I probably definitely have less money now than at any time in the past 15 years or so. Quote Link to comment Share on other sites More sharing options...
jamesmark Posted February 7, 2008 Share Posted February 7, 2008 I agree. (For JM)-Who are the companies who didn't follow BOE rates? Media does not list the companies. Here is one link easily found on google, 3/4 way down tells you that 10 companies done nothing. http://www.guardian.co.uk/money/2008/feb/07/mortgages.interestrates Quote Link to comment Share on other sites More sharing options...
Pete Posted February 7, 2008 Share Posted February 7, 2008 This is good news. I might make a little back lost on the pound to Euro rate thats so poor. Quote Link to comment Share on other sites More sharing options...
CJ Posted February 7, 2008 Share Posted February 7, 2008 Im saving over 2.5k per month How much?? If this small cut in rates is going to save you £2500 PCM, how much are you still going to be paying? Quote Link to comment Share on other sites More sharing options...
Havard Posted February 7, 2008 Share Posted February 7, 2008 Is this one of those, "look at me I'm rich" threads? It wasn't until I pointed out that this cut does not affect me!! Having a mortgage is so last year.... H. Quote Link to comment Share on other sites More sharing options...
RiceRocket Posted February 7, 2008 Share Posted February 7, 2008 I don't have a mortgage just an ISA Quote Link to comment Share on other sites More sharing options...
Jake Posted February 7, 2008 Share Posted February 7, 2008 Is this one of those, "look at me I'm rich" threads? No, it's a "I owe sh!t loads of money so a cut in interest rates is good for me" thread. If you have lots of money a cut in the interest would be bad thing, wouldn't it? Quote Link to comment Share on other sites More sharing options...
Thorin Posted February 7, 2008 Share Posted February 7, 2008 No, it's a "I owe sh!t loads of money so a cut in interest rates is good for me" thread. If you have lots of money a cut in the interest would be bad thing, wouldn't it? The way I see it is that if a cut in the interest rate is saving you £2500 a month, then yes you have a lot of money because you were obviously getting by before the cut. Quote Link to comment Share on other sites More sharing options...
Charlotte Posted February 7, 2008 Share Posted February 7, 2008 Blimey, I wish I was so rich. Quote Link to comment Share on other sites More sharing options...
colsoop Posted February 7, 2008 Share Posted February 7, 2008 Hurry up and slump. America is going down and we will follow. Quote Link to comment Share on other sites More sharing options...
ivan Posted February 7, 2008 Share Posted February 7, 2008 No mortgage here, which means my small nest egg gets even smaller I suppose. Quote Link to comment Share on other sites More sharing options...
Pabs Posted February 7, 2008 Share Posted February 7, 2008 well I've got a fixed mortage, so the drop doesn't affect me. But with that said, the fixed mortgage offers from same lender have stayed the same as they don't seem to have dropped their rates by much. I don't care what happens, so long as it picks up by the time I come to sell the house and get a bigger one Quote Link to comment Share on other sites More sharing options...
CJ Posted February 7, 2008 Share Posted February 7, 2008 I have just worked out that if someone had a £10m (yes, million) mortgage on a 20 year interest only payment basis, the 0.25% drop in rate today would have meant the payment going from £45,833 pcm to £43,750 - a saving of £2083 pcm. So, on that basis, to save £2500 pcm after today's drop would mean a mortgage of quite a bit more than £10m Quote Link to comment Share on other sites More sharing options...
JamieP Posted February 7, 2008 Share Posted February 7, 2008 I have just worked out that if someone had a £10m (yes, million) mortgage on a 20 year interest only payment basis, the 0.25% drop in rate today would have meant the payment going from £45,833 pcm to £43,750 - a saving of £2083 pcm. So, on that basis, to save £2500 pcm after today's drop would mean a mortgage of quite a bit more than £10m Maybe they ment £25.00:d Quote Link to comment Share on other sites More sharing options...
CJ Posted February 7, 2008 Share Posted February 7, 2008 Maybe they ment £25.00:d Maybe Quote Link to comment Share on other sites More sharing options...
far Posted February 7, 2008 Author Share Posted February 7, 2008 No this is not a 'I am rich' thread, I am very much in debt And the bank owns all my assets, I just carry the risk Maybe my post wasnt entirely clear as I didnt qualify what the 2.5k saving was made up of and after reading the post I can see that it looks like i'm basing the entire 2.5k saving on just the BOE rate cuts, considering that this is what the topic of the thread is I can see where the confusion came from. The rate cut is not the entire make up of the saving, infact its a smaller part of it - but since some of you guys are so interested I will explain Example on one property: On a typical 200k buy to let interest only mortgage with 15% down I was paying £715 per month mortgage, with the two .25% interest rate cuts this has gone down to £657 per month. My tenants pay me £975 per month. I bank £318 per month (diff between mortgage and rental) We currently have 12 properties in the portfolio of varying size and 'mortgage vs rental' equation. The above example repeated across the range is considering rental income AND interest rate drops giving me a pre tax yield of 2.5k In fact I was actually not bragging at all, I was just happy that BOE cut rates CJ - I bloody wish I had a 10 mill property! ...we can dream hey? Quote Link to comment Share on other sites More sharing options...
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