Bank of England cut interest rates by 150bp to 3%

Quarrybank

Quarrybank

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I'm on a tracker - woohoo...and might just have to spend my savings on a new horse as they won't be doing much stuck in the bank
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Shows how desperate we are to kick start the economy but unless its passed on to borrowers it won't help anyone. People need disposable income to start spending again and until they have that manufacturing levels won't improve.
 
Oh dear, that's my income cut then. There are more savers than borrowers, in fact if the savers didn't save, there would be no money to borrow.

Do I sound fed up?
 
No good for me - we fix rated in feb as they were going up for 3yrs (couldn't have afforded it going any higher
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) now wondering if we'd be better to pay the early get out fee and remortgage (if they'll let you)
 
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Shows how desperate we are to kick start the economy but unless its passed on to borrowers it won't help anyone. People need disposable income to start spending again and until they have that manufacturing levels won't improve.

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That's exactly what I was thinking. A BBC report this morning said that some lenders were unlikely to pass the rate cut on. Also, wouldn't it be a nice idea for credit card companies to cut their interest rates to something slightly more realistic?
Bank rate = 3%
credit card company rates anything from 15 - 31%
They're quick enough to increase them but very, very slow at reducing them again
 
I wonder how much of that the banks will pass on? We're on a tracker so it's potentially good news, I bet my saving rates drop in the next few days though. Funny how banks can drop the savings rate almost immediately but the mortgage rates seem to take a lot longer to change!! Except for when rates go up of course!!
 
If you're on a base rate tracker they have no choice but to pass on the cut. The only caveat being there may be a bottom below which it will not track. You need to read the small print of your mortgage agreement
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Yes, that's true if you're on a base rate tracker - the minimum level is 3% I think? For those people who's mortgages track their lenders standard variable rate though - I doubt they'll see the full benefit of a 1.5% drop
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Like you say, people need to check their small print.
 
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