Hi

I assume that anyone out there with a UK portfolio funded by trackers will be buying the drinks tonight!
Trebles all round?

Cheers

For sure, come to my local and the drinks are on me!! (first round anyway!)

I have just done a quick calculation and this is worth about £1200 a month to me.

Unexpected bonus - was expecting maybe 0.75% tops.

Although with my macro economic hat on, this is the starkest admission yet that the recession is going to be pretty deep.

Good time for the savvy property investor though - cash permitting of course.

Hopefully it will all or mostly get passed on to the actual mortgage rates...

Yes - luckily most of mine are BOE base rate trackers so they have to pass on. But I would expect that banks will be under pressure from Gordy Boy to pass most or all of the savings onto the customers.

Although a couple of mine did not pass on the recent 0.5% cut.

Yep its pretty encouraging - I am in a similar position to CliveM and thus have quite a big grin on my face this afternoon - which it has to be said is the first time in ages!

Of course as has been stated the downside is that this spells deep recession ahead with the obvious risk that tenants will lose their jobs and consequently be unable to pay the rent - so feet firmly back on the ground albeit with a slightly lighter tread!

Hi,
yes was also very pleased with the decision today, as I have a load of tracker mortgages....but I am not getting too excited....as I have others coming off fixed rates next year, and with more than 80% LTV on these ones, wont be able to get re-mortgages, and will be moved onto SVR....this could spell trouble when base rates eventually rise again.

Anyway, keep positive, and conserving cash.
Regards
Chris.

Coming off fixed rates of 4.69% and reverting to 1.25% above BOE base on several mortgages over next 3 months and 0.34% above BOE base on one mortgage, so very happy. Got most rents now covered with Rental Guarantee insurance. Let's hope rates don't shoot up unexpectedly as quick as they fell!!

It's good news for tenants too as the pressure will be off to keep pushing their rents up and I feel more comfortable with that.

The only gripe I have is the difficulty of planning anything in the future. In France I have a mortgage whereby I pay the same amount every month for the full term, it's just the length of Term that changes when rates change - far more sensible and at least you can do a sensible financial forecast. How can anyone forcast in this volatile market where we are all moving to Trackers and Variables?

I'm not sure how it will affect house prices though as new mortgages are of course much more of a problem and Trackers of 1.25% above BOE base are now non-existent- let's hope they come back but I doubt it. I fear this is a time for Banks to become very rich quickly again by taking a slice of this reduction for themselves.

I was irresponsible and also went over-budget on some work. I did not have a decent 'fighting fund' ready for a downturn. I am very lucky to have 82% of my loans on long term trackers or equivalent. I will use this low interest rate window to build up a fund as quickly as possible.

So ... very happy .... but still tight.

I think alot of us have learnt something from this Ed and the signs are that most of us are now trying to build up some reserves. Don't beat yourself up about being irresponsible, at the time you were probably doing the same as most of us and gearing up as quickly as possible under the 'make a million' promises being thrown around at the time.

If we had all been sensible and seen this coming, we would have done like Richard told us to and invested in Gold and Hungary !!!

Thankfully I stayed away from the Day Trading seminars, now wouldn't that have been irresponsible? Imagine trying to Day Trade the markets over the last few weeks, you'd be cream crackered!

It has impacted the whole business and I doubt how fast a recovery will be possible.


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