UK interest rates trimmed to 5.5% - HotUKDeals
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UK interest rates trimmed to 5.5%

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9y, 2d agoPosted 9 years, 2 days ago
Sign of relief... ;-)


The Bank of England has cut UK interest rates to 5.5% from 5.75% amid signs that the economy is slowing.


http://news.bbc.co.uk/1/hi/business/7130443.stm BBC.co.uk
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9y, 2d agoPosted 9 years, 2 days ago
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#1
Good news, wasn't expecting it for a long time to be honest. Lets hope that it lasts for a long time.

Inflation still over target, people still too happy to get easy credit. Until all that changes we still could see interest rates rocket at any time.

I think it's all a conspiracy theory to keep people needing to buy houses. If they didn't then one day everyone would've paid their mortgage and people would pass down houses when they die so no-one would ever need to buy a house again!
[admin]#2
Yes Benji, because it's not like the population is increasing..... :roll: :giggle:

It's good news :)
#3
Bummer.

The higher the better for me!
#4
juliet_bravo
Yes Benji, because it's not like the population is increasing..... :roll: :giggle:

It's good news :)



At a very slow rate!

If things carry on as they are then no-one would need a mortgage, you'd only have renters and people that own their house out right so every so often rates need to go up to cause a lot of repossessions!
#5
not to sound daft but how does this affect us? never really understood all this interest rate pap
#6
king261
not to sound daft but how does this affect us? never really understood all this interest rate pap



If you owe money (ie a mortgage which you use to buy a home) you'll pay a little less now, if they owe you money (ie you have it in a savings account) then you'll get paid a little less interest.

The rate has gone down 0.25% but because the figure is low the amounts that you pay or are paid change by about 4%
#7
That's good to hear because I'm about to go into Real Estate for some extra cash. :)
#8
king261
not to sound daft but how does this affect us? never really understood all this interest rate pap
well with homes its as simple as the cost of the loan goes up sooooo to look at it in real terms my mortage has gone from 550 a month a couple of yrs ago to todays 710 a month thanks to the interest rises

it also impacts other ways , take a credit card at 22% interest , the credit card company may put the interest rate upto 26% as it will be losing monies

other things are as all our bills go up due to the rise we are less likely to spend money , at a pinicule people dont have money so people therefore only by food rather than luxerys which in turn means companys cant survive so go bust making people jobless who in turn now have near no money so dont buy anything so welcome to recession , the other way is the population spends regardless enriching everyone but if monies arnt earned and credit is used to buy then monies are owed to other countries , gross national dept , interest is payable on this and this has an impact also

in all this house prices are just an indication to how healthy the country is financually , one problem we have is we have massive influxes of people from this time poland who deplete the housing stock , theres only so many houses for people to live in so demand outstrips supply and hence the massive house price increases at points where EU citizens have the ability to travel to the uk and work , we at present should be near if not in recession , gross domestic product ( stuff we make and sell or service provided like say banking) says we are but house prices contradict this
#9
About time we joined the Euro and had our interest rates brought in line with most of the rest of Europe. I don't see why we should pay 2 or 3% more on our borrowing than they do. It's just an excuse to make banks and the treasury more money. I don't believe raising interest rates has much effect on day to day spending at all - it just gives the rich and those with substantial savings even more to spend than before, and penalises the less well off. Although the Bank Of England is supposed to dictate interest rates without treasury influence, I'll bet that isn't the case, especially with a control freak in number 10 and an idiot in number 11.
#10
melanie789
About time we joined the Euro and had our interest rates brought in line with most of the rest of Europe. I don't see why we should pay 2 or 3% more on our borrowing than they do. It's just an excuse to make banks and the treasury more money. I don't believe raising interest rates has much effect on day to day spending at all - it just gives the rich and those with substantial savings even more to spend than before, and penalises the less well off. Although the Bank Of England is supposed to dictate interest rates without treasury influence, I'll bet that isn't the case, especially with a control freak in number 10 and an idiot in number 11.
germany have 100yr mortage so you can get a nice property or buy a nice dacca on a lake ( holiday home )

france has interest on all monies regardless of type of account and money involved so if the rates 6% you get 5% be it on 1 euro or 10 million , also they dont get charged for any banking including overdrafts ( to a point mind )
#11
Bad for the reason that it's not in line with inflation i.e. it's manipulated.

Obviously, those who have mortgages will benefit.

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