Interest rates cut for the first time in 2 years... :)

[123debtsolutions]

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Interest rates cut for the first time in 2 years...

5.5% wow, only good times ahead.....

Should save me a few quid in mortgage payments in 08, lol. Knock on effect in the finance industry should be good news for all parties...

[Barry]

What an interest rate?

Is that the payment that comes out of my account thats alot cheaper than my old rent?

[cyates]

glad im getting up to 20 finance sites up before Jan now

[tbp]

I think it could be too little too late!

Know a lot of people who are trying to remortgage at the moment, but getting flatly refused, and their existing provider is adding hundreds extra on to their monthly payments.

Read in the paper that last month only 40% of mortgages were improved, and lending has been cut all round.

Also read today, that its unlikely that the interest rate decrease will be passed on to borrowers, a lot of banks and building socities are keeping their rates the same.

Really glad I don't have a mortgage at the moment (I rent)

[Azam.net]

I think it's a disaster that they are fuelling the credit/borrowing/housing price insanity with this measure. It keeps the bubble going and does not help critical structural issues. Yes, it is positive from a short-term perspective for our businesses and for mortgage holders, but does not bode well for the long term wellbeing of our society and our nation's financial stability, and that is my foremost concern.

Cutting interest rates makes borrowing cheaper and so encourages more people to take out loans and buy unnecessary material items with other people's money. It disincentivises saving up. UK personal debt already stands at nearly £1,400 Billion, an approximate 10% increase in just the last 12 months, and people in this country have twice as much debt as those in continental countries.

Also it will encourage people to feel they can afford bigger mortgages, which will ultimately mean keeping property prices stratospheric... which means less chance for our younger people to get on the property ladder (well, for those that don't have rich mummies and daddies). This will mean we have an even more unequal, divided, and frustrated society.