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    Interest rate cut to 1.5%

    Not as much as alot of people were expecting but I'm sure they'll drop again in the next couple of months.

    12 Comments

    Banned

    this will really muck things up, the government are penalising the sensible ones among us

    goldmax;3991603

    this will really muck things up, the government are penalising the … this will really muck things up, the government are penalising the sensible ones among us



    Totally agree i beging to wonder if it is worth saving.

    Banned

    goldmax;3991603

    this will really muck things up, the government are penalising the … this will really muck things up, the government are penalising the sensible ones among us



    I've got a fixed rate bond of 6% what you on about ? :whistling:

    Banned

    BlondeBella;3991623

    Totally agree i beging to wonder if it is worth saving.



    you may aswell copy everyone else- spend,spend,spend, plasma tv, new flashy car etc

    thats what the government are encouraging now!

    morgage going down again nice

    Banned

    but all we buy is imported stuff- no use to our economy

    goldmax;3991657

    you may aswell copy everyone else- spend,spend,spend, plasma tv, new … you may aswell copy everyone else- spend,spend,spend, plasma tv, new flashy car etcthats what the government are encouraging now!



    I wish i am trying to save every last pennie to get a house, I cant see that happening this year.

    With planning a wedding and remortgaging this couldnt have come at a better time.

    Mind you im not that happy i was given wrong info by my mortgage advisor about how much my mortgage will drop.

    Original Poster

    pcnutta;3992729

    With planning a wedding and remortgaging this couldnt have come at a … With planning a wedding and remortgaging this couldnt have come at a better time.Mind you im not that happy i was given wrong info by my mortgage advisor about how much my mortgage will drop.



    It should drop pretty much what he said.

    As the rate gets closer to 0% you'll notice your repayment part of the mortgage will go up. ie my repayment part of the mortgage is about £200 a month, if the rate of the mortgage dropped to 0% then the repayment part would increase to around £350. So I'd still be better off as I'd be paying less interest (none infact) but my mortgage amount wouldn't drop the usual amount as when you get close to 0% the repayment part increasing becomes alot more noticable.

    Benjimoron;3992782

    It should drop pretty much what he said.As the rate gets closer to 0% … It should drop pretty much what he said.As the rate gets closer to 0% you'll notice your repayment part of the mortgage will go up. ie my repayment part of the mortgage is about £200 a month, if the rate of the mortgage dropped to 0% then the repayment part would increase to around £350. So I'd still be better off as I'd be paying less interest (none infact) but my mortgage amount wouldn't drop the usual amount as when you get close to 0% the repayment part increasing becomes alot more noticable.



    I spoke to the manager today who gave me the correct figure... my mortgage is or was currently 560 and one adviser told me it was gonna drop to 380 BEFORE todays announcement. So i rang woolich who said Feb payment will be 421.

    Manager told me he dnt know why his advisor told me 380, it was wrong. Im on tracker thing.
    So i wasnt very happy being told something which wasnt right. I cant complain too much its still dropped.

    Original Poster

    pcnutta;3993275

    I spoke to the manager today who gave me the correct figure... my … I spoke to the manager today who gave me the correct figure... my mortgage is or was currently 560 and one adviser told me it was gonna drop to 380 BEFORE todays announcement. So i rang woolich who said Feb payment will be 421.Manager told me he dnt know why his advisor told me 380, it was wrong. Im on tracker thing.So i wasnt very happy being told something which wasnt right. I cant complain too much its still dropped.



    They probably just calculated the drop in interest without taking into account that repayments start to increase at a noticable level when rates get so low. Same mistake as I made last time. It's dropped almost as far as they said. Remember that the extra that you're paying isn't interest, it's capital. So you're paying more off per month than you were before.
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