Rate cut

[kalla]

With tracker loans and there are 40% of them outhere and so rates will be cut.But for the S.VR rates about 10% of all loans then its uncertain. Any bank thats taking government baleout money will have no choice but to cut some SVR interest rates..its only right. Other banks lucky enough to aviod government loans (HSBC, Barclays,Abbey)may not as they have to make money.3% is the floor for tracker rates and no rate will go down below this.

I think looking at the wider picture, its dire for the economy....not normal to have such low rates - US is 1% Japan is 0.3%. Its in crisis when the rates are low.

If you are a saver, even in an IVA your money will get less interest and with inflation at 5.2% your money is worth less in trolley spending...unless you are in Iceland or Ukraine
etc.

[Andrew Graveson]

So far this afternoon I have received emails from four of the UK's leading mortgage lenders withdrawing their entire range of tracker mortgages.
One explicitly stated that they would not be replaced.

If this trend continues there might be very little availability of new tracker mortgages.

This is fine if lenders intend to pass on todays (and future) Bank of England rate reductions in full to those on the SVR or connected discounted mortgages.

There again, if they thought that they would intend to pass on the full reductions why would they remove tracker products!