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- Thread starter billyo
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email gord @ bankcrupt dot com B>O>E> 
The rates are immaterial. If people are, understandably, concerned about their future prospects, then they're not going to spend unless they really have to, whether it's 1%, 0%, 2%.
Unless and until the housing and mortgage markets get up and running again, we're going to stay in the pants situation that we're in.
Unless and until the housing and mortgage markets get up and running again, we're going to stay in the pants situation that we're in.
S
Shutpa
What the point of having low interest rate if the banks are not lending
I agree. What I would like to know however, is what they are doing with the money that millions of us deposit every month if they are not lending it. Spoke to a guy earlier today who wants to expand his business in a fairly modest way but his bank just doesn't want to know.
What i'd like to know is why the interest rate on my savings account has fallen by around 3% recently, but i keep getting adverts/flyers through the door offering me loans with a typical rate of 8.9% when 12months ago they were offering typical rates of 6.9%?
Why does the borrowing rate go up but the saving rate go down with the BOE rate?
If this is because they think i'm more likely to lose my job now and so therefore there is more chance i wont pay it back and are covering the increased risk with an increased rate, then why are they so keen to lend me the money? I must be getting at least two 'loan offer' leaflets through the door every week at the moment?
Why does the borrowing rate go up but the saving rate go down with the BOE rate?
If this is because they think i'm more likely to lose my job now and so therefore there is more chance i wont pay it back and are covering the increased risk with an increased rate, then why are they so keen to lend me the money? I must be getting at least two 'loan offer' leaflets through the door every week at the moment?
If I can buy the same with my £'s this year as I will be able to next year I dont mind to much about my savings not growing, after all I have moved them about so I cant lose money should a bank go bust.
I feel like I have just had a windfall, I have pre booked by Skis in ££'s at lasts years price, unfortunatly I didnt pre order the lift pass to make the best savings, but I have made a saving buying in ££'s not Euro's
Its nice being old with everything paid for & no debt, you lot will all get there soon..
I feel like I have just had a windfall, I have pre booked by Skis in ££'s at lasts years price, unfortunatly I didnt pre order the lift pass to make the best savings, but I have made a saving buying in ££'s not Euro's
Its nice being old with everything paid for & no debt, you lot will all get there soon..
Banks are trying to play both ends against the middle, reducing rates for savers but not passing on cuts to borrowers.
Having had a slap for frivolous lending they have now become like petulant children and are refusing to lend to anyone.
While we don't want a return to the spend spend spend culture there needs to be an easing on the money lending front for the wheels of commerce to start turning again.
Having had a slap for frivolous lending they have now become like petulant children and are refusing to lend to anyone.
While we don't want a return to the spend spend spend culture there needs to be an easing on the money lending front for the wheels of commerce to start turning again.
Unfortunately what Brown knows, despite his going through the motions of chastising the banks, is that there simply is no money to lend!
Added to that his 'help' to the banks comes at a cost - 12% in fact..
Financial institutions are slowly going around squeezing out any real assets before the whole place goes t*ts up...
And the story about planning to just print money to get out of the crisis is false - they are doing it already!!
we spoke to our mortgage lender the nationwide today. we are coming to the end of our 5 year fixed rate mortgage and we want to see what deals we can get. Ideally we would like a fixed rate one as i prefer the security of knowing what the monthly payment will be. At present we cant get a better fixed rate deal than we could 5 years ago. The guy told us that all the banks dont trust each other so the fixed rate mortgages are all staying high. 
I have been considering my options. If I look after my savings and then find myself out of work, I'll be forced to utilise my savings before I get any assistance.
But, if I spend all my savings now, then find myself out of work, I am far more likely to get assistance with mortgage interest payments etc.
Doesn't make sense.
But, if I spend all my savings now, then find myself out of work, I am far more likely to get assistance with mortgage interest payments etc.
Doesn't make sense.
Use your savings to bring down your mortgage, leaving yourself £6000.
I believe you can have that much saved without it being taken into account.
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What the point of having low interest rate if the banks are not lending
Surely a lower IR will "create" disposable income?
C
confidentincompetent
What the point of having low interest rate if the banks are not lending
Surely a lower IR will "create" disposable income?
yeah good for those in a safe job and a big mortgage.
Not so good for those who have to live on their capital, or those about to lose their jobs..
It's tempting to think sinister thoughts, bolo, but don't forget that the banks are required, by licence, to sustain a minimum reserve ratio. Since there have been many partial runs on many banks, reserves are depleted.
You can rest assured that they'll lend as soon as they can afford to, because without lending they have only liabilities and costs, which doesn't constitute a sustainable business.
It's called fractional reserve banking, and unfortunately whilst there may a mention in their licences about checking accounts, there is no requirement on deposit accounts. Some banks have a minimal reserve of only about 1% - some of the lowest in the world, but all are heading that way! (china for example has just reduced it's requirement from 12% to 5%).
Being in the same boat (albeit coming off a 2yr one), we have found an unexpected 'silver lining'. Despite fearing the worst as we're with NR, accounts are being 'cherry-picked' as the government wants it's money back. At first they were not very good rates, but having waited over the recent falls, we're being offered a better rate than what we got just over 2 years ago when the rates were probably at their lowest. This rate is better than the published rates!...just working out now whether to accept,or hang on NR's SVR for a while longer to see if there is another revised offer in the downward direction.we spoke to our mortgage lender the nationwide today. we are coming to the end of our 5 year fixed rate mortgage and we want to see what deals we can get. Ideally we would like a fixed rate one as i prefer the security of knowing what the monthly payment will be. At present we cant get a better fixed rate deal than we could 5 years ago. The guy told us that all the banks dont trust each other so the fixed rate mortgages are all staying high.
