ECB Rate Cut

MichaelDes said:
This is my primary concern and think high inflation will occur. Inflation is a disease and wipes out the earnings and savings of the middle classes.
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But when everyone is riddled with debt it can be good in the long run as it has the effect of making your debt cheaper. My parents struggled with their mortgage to start with which can now be described as peanuts. The prospect of being stuck with a high mortgage till the end is far more scary than having to deal with increasing shopping bills imo.
 
A week off yes, but this is no naughty step!
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Bit like FAS eh! Except that was Mount Juliet !:D

So if I am on 5.99% with IIB on a Variable mortgage, would I be too optimistic to hope that it will drop to 5.49 next month ?
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Only at the discretion of the bank :(
 
contractor said:
But when everyone is riddled with debt it can be good in the long run as it has the effect of making your debt cheaper. My parents struggled with their mortgage to start with which can now be described as peanuts. The prospect of being stuck with a high mortgage till the end is far more scary than having to deal with increasing shopping bills imo.
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The way money is being printed by all money exchanges the likelyhood of an other Weimar [1920's] is possible. Anyone seeing a positive in this or high inflation is delusional.

[broken link removed].

High inflation might be good short term to control all these excesses but wage inflation never matches real inflation. CPI is horlicks, RPI is a better measure. Do you really believe true inflation in the economy is sub 5%?
 
QED said:
Could this be the fastest growing Thread ever on AAM?
50 Replies and over 1,500 views in 2.5 hours - not bad.
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The speed of this thread shows how desperate people are to get thier hands on any reduction in the cost of debt!!

Guys, don't get too carried away it will be taken from your pockets again in the budget next week.

BUT it should make the budget easier to swallow.
 
Mr DT said:
Guys, don't get too carried away it will be taken from your pockets again in the budget next week. BUT it should make the budget easier to swallow.
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What maddens me on the rate cut is that most people are maxed out on cheap credit. This was okay when there was more money available and more job security. But these have changed. Although the level of debt hasn't changed.

All this rate cut will achieve is to delay the inevitable and change biflation to stagflation. Rate cuts of this nature will be ineffective as Libor remains disconnected from base rates. Interventionalism in free market in my opinion exacerbates problems and occurred previously following the 1930’s.

The gold rocket got more turbo juice today and my weighting will be increased. If this cut is so good why are the markets reacting so much, FTSE down 4% and the financial system now at Defcon 1?
 
The speed of this thread shows how desperate people are to get their hands on any reduction in the cost of debt!!
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Why shouldn't people enjoy a glimmer of hope? If passed on this decrease will help a lot of people in real terms when it comes to cash in there pocket at the end of each month.
 
Seems to me like another shot of defibulator into the dying heart of the current financial world , enjoy the last few breaths as there is a funeral coming that we will all need to attend !
 
I know its a silly thing to ask but, if the current ECB rate cut didn't have the desired effect, or enough of the desired effect, would ECB/EU cut the rates further? Is it an option for them, or will it cause other short/longterm issues?
 
terrestrial said:
I know its a silly thing to ask but, if the current ECB rate cut didn't have the desired effect, or enough of the desired effect, would ECB/EU cut the rates further? Is it an option for them, or will it cause other short/longterm issues?
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This question and alot of the other posts probably belong in the Great Financial Debate section where there is already a thread on ECB rates. People here probably just want to know the effects on their monthly mortgage repayments not have an economic discussion on inflation, stagflation or any other type of flation!
 
MichaelDes said:
The gold rocket got more turbo juice today[/quote]

By any chance, are you on the greenenergyinvestor board too?

I for one, am very happy with the rate drop :D My mortgage(tracker) comes out of my a/c at the end of this month. Will the update take effect then or will I have to wait until the end of Nov?
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From what I can see, Halifax and AIB are passing this on almost straightaway.. Is that correct?
 
Its great news.... well a little bittersweet as Rea who arranged my tasty tracker rate have gone to the wall, they were great. Hopefully it gets passed to all on SVRs too.
 
I hear from friends in banks that little beavers in the banks are currently working on ways of getting out of their tracker mortgage agreements.
 
I don’t see how they can, isn’t the whole point of a tracker to get a margin over the ECB for the life of the mortgage?


However if you have a LTV that’s borderline they may insist on a revaluation of your home and change the rate if your LTV has changed.
 
theoneill said:
I don’t see how they can, isn’t the whole point of a tracker to get a margin over the ECB for the life of the mortgage?


However if you have a LTV that’s borderline they may insist on a revaluation of your home and change the rate if your LTV has changed.
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If they reevaluate and the LTV has changed then it means you need to renegotiate the mortgage. For banks which no longer offer tracker mortgages surely that means moving onto a standard variable?
 
contractor said:
If they reevaluate and the LTV has changed then it means you need to renegotiate the mortgage. For banks which no longer offer tracker mortgages surely that means moving onto a standard variable?
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I dont think so. The mortgage offer is a legal agreement and surely can't be renegotiated without both parties agreeing to it?
 
We drew down our mortgage earlier on this week with IIB, does anyone know if we will be able to get the .5% cut on our mortgage. Or has anyone heard of IIB passing it onto their customers like the other banks.
 
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