Libor Plunges to 3.94 Percent: Will Mortgage Rates Follow?

The three-month Libor fell to its lowest level since December 2003 today, dropping lower than 4 percent to 3.94 percent.

The Libor rate is the banks benchmark rate to which they lend to each other, until now the Libor rate has been much higher than the Bank of England base rate. The banks have been urged by the government to drop their Standard Variable Rates (SVR) but the banks have blamed (read more…)

Category: Interest Rates, Mortgage News | November 26th, 2008 | Comments (0)

Interest rates slashed in China

China has cut its key interest rates by 1.08 percent to 5.58 percent today, this being the largest cut the Chinese government has made for a decade in an attempt to shore up the economy.

The cut which is the forth in three month’s emphasizes the government’s fears of slipping growth rates, and its aim to encourage consumers and companies to spend (read more…)

Category: Business News, Global Economy, Interest Rates | November 26th, 2008 | Comments (0)

HSBC reduces its SVR from 6.25% to 5.44%

HSBC have finally announced they are cutting its Standard Variable rate (SVR) by 0.81 percent, down from 6.25 percent to 5.44 percent, the rate change will take place on December 5.

HSBC customers are disappointed Britain largest bank are the only bank that will not pass on the full rate cut. Reports out this week show it is almost impossible for a first time buyer to find a Tracker (read more…)

Category: Business News, Interest Rates | November 21st, 2008 | Comments (1)

Bank of England Likely to Slash Interest Rate Further

November 18: The Bank of England originally considered cutting the base interest rate by 2 percent before settling on cutting the base interest rate by 1.5 percent earlier this month. The vote to cut the rate by 1.5 percent was voted unanimously by The Monetary Policy Committee.

With the UK economy falling for the first time since the early 1990’s into its first stage of recession, it’s expected that the economy will continue to shrink for the majority (read more…)

Category: Europe, Interest Rates | November 19th, 2008 | Comments (0)

Barclays Mortgage Arm Woolwich Launch Fixed Rate Deal at 3.99%

Barclays (LON:BARC) and mortgage arm Woolwich are launching from tomorrow a new one-year fixed mortgage deal called “fix and track” at a rate of just 3.99 percent, one snag, you do have to have 40 percent deposit.

The 3.99 percent mortgage rate will then revert after 12 months to a lifetime tracker rate of 1.99 percent over the Bank of England base rate which is currently at 3 percent (read more…)

Category: Interest Rates, Mortgage News | November 13th, 2008 | Comments (0)

No 40 Percent Deposit: No Alliance & Leicester Tracker Mortgage

Alliance & Leicester joined Abbey and Lloyds TSB and announced new tracker mortgage deals yesterday, the move came after the 1.5 percent interest rate cut from the Bank of England last week. Most Lenders withdrew their existing tracker mortgage products in light of the cut, but the new tracker deals are few and far between and unless you have at least 25 percent deposit (75 percent LTV) you will be hard pushed to find one.

With the two tracker mortgage deals Alliance & Leicester are offering you would need a staggering 40 percent deposit to qualify, the starting rate is 1.89 percent over base or 4.89 percent (read more…)

Category: Europe, Interest Rates, Mortgage News | November 13th, 2008 | Comments (0)

Bank of Canada: More Interest Rate Cuts

Bank of Canada is likely to cut the interest rate again according to Paul Jenkins the Senior Deputy Governor due to weakening economic growth and the global credit crisis.

In a speech in Toronto earlier today Jenkins said “Some further monetary (read more…)

Category: Global Economy, Interest Rates | November 13th, 2008 | Comments (0)

Bank of England (BoE) base rate to 0% if necessary

The Governor of the Bank of England Mervyn King delivered the Banks Quarterly Inflation Report to the nation saying that “people should be concerned” about the economy and that “the world has changed” he also warned of hard times ahead.

In the bleak report he Mr King strongly hinted that the Bank of England will probably have to cut the interest rate cut again and it could be cut below 2 percent to kick-start the tumbling (read more…)

Category: Europe, Global Economy, Interest Rates | November 13th, 2008 | Comments (0)

Bank of England base rate and credit card firms

Credit card companies refused to reduce interest rates much to the dismay of Gordon Brown who has been urging them to cut their rates since last Thursday’s base rate cut. However the Prime Minister clearly indicated in his monthly press conference yesterday that he will be coming down heavy on the credit card companies stating he is calling for a “new, responsible approach” to lending.

According to analysts Defaqto, the average interest rate charged covering (read more…)

Category: Europe, Interest Rates | November 12th, 2008 | Comments (1)

Lloyds TSB launches Tracker Mortgage at 4.89 percent

Although Lloyds TSB (LON:LLOY) did pass on the full 1.5 percent base rate to its existing customers, if you are a new customer looking for a tracker mortgage then you will not benefit from the full 1.5 percent cut, Lloyds TSB has followed the lead of Abbey and hiked up the amount it charges above the base rate on its tracker mortgages.

Lloyds TSB who also own Cheltenham & Gloucester increased its tracker (read more…)

Category: Europe, Interest Rates, Mortgage News | November 11th, 2008 | Comments (0)