With Bank of England Governor Andrew Bailey holding a news conference about a potential interest rate cut, a lot of people are wondering how this could impact their savings, investments, and financial stability. The prospect of a rate cut is usually a mixed bag: while it can make borrowing cheaper, it often means lower returns on savings accounts and potentially more volatility in investment markets
If you’re like many investors, especially those close to retirement, these types of announcements can be nerve-wracking. An interest rate cut could mean your hard-earned savings are exposed to less favorable rates, which may prompt investors to consider reshaping their portfolios to adapt.
For example, holding onto cash savings might feel like a safe choice, but with reduced interest rates, returns may barely keep up with inflation, eroding your spending power over time. Some savers may seek higher returns by moving into bonds or equities, but even those options require careful thought, as these markets could respond unpredictably to a rate cut.
Holding onto cash savings might feel like a safe choice, but with reduced interest rates, returns may barely keep up with inflation, eroding your spending power over time. Some savers may seek higher returns by moving into bonds or equities, but even those options require careful thought, as these markets could respond unpredictably to a rate cut.
Feels like a giant scam. Our own remortgage has gone up 0.3% and the other two lets are up 0.1% Was hoping for rates to drop after the BOE cut but a rise is a disaster.
After 14 straight rate rises we’ve now had two small cuts. More symbolic than useful, so many people feeling the pain of dropping off fixed rates at a much lower level and seeing mortgage payments rising hugely. Inflation is below target they should have dropped faster and by more
They knew a Labour government was inbound with massive tax rises and a huge wad of inflation in their back pocket. They also now know that Trump is waiting in the wings and he has even more inflation that he's waiting to unleash on us. Cutting too fast won't stabilise our economy, it would just be a short term hit and then we would have to raise rates again this time potentially higher. I'm actually OK with them being at least stable for the time being and that way things are more predictable.
James, you got the prediction right on the interest rate cut, even though you didn't get your American election prediction correct. So well done. I got an email notification from the Halifax bank @ 12:10pm today;- "Have a variable rate mortgage? We are currently reviewing our variable rate mortgages. We’ll send you details of any change to your interest rate and mortgage payments by post. You don’t need to do anything until you receive this. The change won’t happen straight away, the date will be detailed in the letter."
Thank you James for another great video. I am currently in the process of buying a residential home. Do you think it's too risky going on a tracker mortgage at the moment?
I would speak to a broker about your personal circumstances, I have made a video on the pros and cons of a tracker here - th-cam.com/video/unfmoD9v5xg/w-d-xo.htmlsi=8HQmucJvm1wGpq86
Thats a nice text to get, Santander are under pressure they have said it will take 7 weeks to pass on the cut. Im sure if they increase rates Santander wont take 7 weeks to increase!
@@danielallen316 iam on tracker not worth fixing at moment as not much in defence in fixing so trying to rough it out till next year and let’s see what happens, way this is going I see big drop and recession coming with companies laying people of and a lot of repressions on the way , working people can’t keep paying the price for everything. This government has just taken more money from the working classes the people I thought they said were standing up for .
we are led by a bunch of buffoon's. In February they stated that inflation will drop by July and go up towards the end of the year. What a surprise, we currently have the lowest inflation rate in years, so the budget is going to put a few quid in peoples pocket which has already been offset by mortgage and rent increases. Todays inflation is not a factor of increased disposable income but the after effects of quotative easing and and the sky high energy cost that have mostly subsided. Inflation will stay more or less the same and possibly gradually lower. Property prices? 2 flats on my portfolio (diffrent locations), purchased almost 5 years ago (north london) right move had on the market identical location same block actually cheaper then I purchased them for and i am a shrewd buyer, so no one is re-mortgaging to buy brand new cars holidays etc, etc. But as per usual the Bank of England always waits for torrential rain poring down before thinking of purchasing an umbrella..
BoE base rates seem largely symbolic, if the swap rates don't fall then our mortgage rates stay the same. Nice that they're down a quarter, but what real World effect will that have?
Hi James How long does it roughly take before these rate drops affect banks to drop their interest rates? Your last prediction was spot on during the last drop
Higher the rates higher the profits that’s why banks not in no hurry to cut them , I see a recession coming with higher prices coming and lose of jobs thanks to government and then banks will bring rates down but will be to late .
No drop for mortgage rates because it is based on our BOE 10 year Treasury which currently is rising. Next year's inflation will also officially start to rise again having a further knock on effect on higher rates. Blame the government for that one.
@propertyaccelerator Trump, being a man of business likes Low Interests. Trump will start trade wars with China & e.u and worse mexico. Logically he is correct in the interest of u.s.a, but politically he is not.
Read MORE about it on our new blogs: property-accelerator.co.uk/bank-of-england-cuts-base-rate-to-4-75/
With Bank of England Governor Andrew Bailey holding a news conference about a potential interest rate cut, a lot of people are wondering how this could impact their savings, investments, and financial stability. The prospect of a rate cut is usually a mixed bag: while it can make borrowing cheaper, it often means lower returns on savings accounts and potentially more volatility in investment markets
If you’re like many investors, especially those close to retirement, these types of announcements can be nerve-wracking. An interest rate cut could mean your hard-earned savings are exposed to less favorable rates, which may prompt investors to consider reshaping their portfolios to adapt.
For example, holding onto cash savings might feel like a safe choice, but with reduced interest rates, returns may barely keep up with inflation, eroding your spending power over time. Some savers may seek higher returns by moving into bonds or equities, but even those options require careful thought, as these markets could respond unpredictably to a rate cut.
Holding onto cash savings might feel like a safe choice, but with reduced interest rates, returns may barely keep up with inflation, eroding your spending power over time. Some savers may seek higher returns by moving into bonds or equities, but even those options require careful thought, as these markets could respond unpredictably to a rate cut.
Yeah savings rates will drop sadly.
Always enjoy your videos - down to earth info. Thanks
Glad you like them!
Feels like a giant scam. Our own remortgage has gone up 0.3% and the other two lets are up 0.1% Was hoping for rates to drop after the BOE cut but a rise is a disaster.
Sadly Labours budget has spooked the markets so rates wont drop for a while.
After 14 straight rate rises we’ve now had two small cuts. More symbolic than useful, so many people feeling the pain of dropping off fixed rates at a much lower level and seeing mortgage payments rising hugely. Inflation is below target they should have dropped faster and by more
Agreed
They knew a Labour government was inbound with massive tax rises and a huge wad of inflation in their back pocket. They also now know that Trump is waiting in the wings and he has even more inflation that he's waiting to unleash on us. Cutting too fast won't stabilise our economy, it would just be a short term hit and then we would have to raise rates again this time potentially higher. I'm actually OK with them being at least stable for the time being and that way things are more predictable.
James, you got the prediction right on the interest rate cut, even though you didn't get your American election prediction correct. So well done. I got an email notification from the Halifax bank @ 12:10pm today;-
"Have a variable rate mortgage?
We are currently reviewing our variable rate mortgages. We’ll send you details of any change to your interest rate and mortgage payments by post. You don’t need to do anything until you receive this. The change won’t happen straight away, the date will be detailed in the letter."
Yeah Elections I dont know much, Interest Rates I study a lot before I put videos out. Thats good they are letting customers know so quickly.
Thank you James for another great video.
I am currently in the process of buying a residential home. Do you think it's too risky going on a tracker mortgage at the moment?
I would speak to a broker about your personal circumstances, I have made a video on the pros and cons of a tracker here - th-cam.com/video/unfmoD9v5xg/w-d-xo.htmlsi=8HQmucJvm1wGpq86
@propertyaccelerator thank you
Fantastic analysis
Thank you Sir!
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Il put my prices up like Sainsburys n pass on to those that just hourly rate increase, well done uk
Exactly most will.
I'm on a tracker and just received a text from Barclays that my mortgage payment will go down in December
Thats a nice text to get, Santander are under pressure they have said it will take 7 weeks to pass on the cut. Im sure if they increase rates Santander wont take 7 weeks to increase!
@@danielallen316 iam on tracker not worth fixing at moment as not much in defence in fixing so trying to rough it out till next year and let’s see what happens, way this is going I see big drop and recession coming with companies laying people of and a lot of repressions on the way , working people can’t keep paying the price for everything. This government has just taken more money from the working classes the people I thought they said were standing up for .
Awesome content James, well done!
Much appreciated!
we are led by a bunch of buffoon's. In February they stated that inflation will drop by July and go up towards the end of the year. What a surprise, we currently have the lowest inflation rate in years, so the budget is going to put a few quid in peoples pocket which has already been offset by mortgage and rent increases. Todays inflation is not a factor of increased disposable income but the after effects of quotative easing and and the sky high energy cost that have mostly subsided. Inflation will stay more or less the same and possibly gradually lower. Property prices? 2 flats on my portfolio (diffrent locations), purchased almost 5 years ago (north london) right move had on the market identical location same block actually cheaper then I purchased them for and i am a shrewd buyer, so no one is re-mortgaging to buy brand new cars holidays etc, etc. But as per usual the Bank of England always waits for torrential rain poring down before thinking of purchasing an umbrella..
Agreed they are way behind what actually is happening.
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Businesses are closing all over. We need to get the economy going again.. Labour have done nothing apart from tax increases
Agreed
BoE base rates seem largely symbolic, if the swap rates don't fall then our mortgage rates stay the same. Nice that they're down a quarter, but what real World effect will that have?
Impacts tracker rates which 600k people currently have.
Hi James
How long does it roughly take before these rate drops affect banks to drop their interest rates? Your last prediction was spot on during the last drop
If you are on a tracker it should be immediate. For new mortgages sadly it does not look like they will pass this rate cut on due to Labours Budget.
@ understandable
Labours budget is a disaster.
Its not great, I think a lot of jobs will be lost due to it. Sainsburys came out today and said they will need to put up prices.
@@propertyaccelerator I will never forgive and never forget the Tories 2 years ago with their Mini-Budget, the worst Budget in my lifetime.
You’re getting mixed up with the Tories from 2 years ago.
@@IvanAmbroseit’s worth reading the BOE review of that budget and now widely recognised as there fault and miss calculation
The FED has just announced there are more cuts to come but the borrowing markets are waiting before reducing their rates.
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How much debt is in the private sector again?
Too much.
No mortgage rates wont drop by anything worthwhile. Bonds are up to 4.6%. People don't want to bet on UK national debt now.
If it goes over 5% then Rachel Reeves plans are screwed
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They won’t drop simply because the cuts were already factored in. Nothing to do with anything else.
One week your telling us next week your asking us!
Higher the rates higher the profits that’s why banks not in no hurry to cut them , I see a recession coming with higher prices coming and lose of jobs thanks to government and then banks will bring rates down but will be to late .
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Here is a thought. Would banks try to keep mortgage rates high until some banks collapse. Is there historical precident for this?
high
I think they will reduce if they get less enquiries, that happened earlier this year. If the market is busy with applications the rates wont budge.
No drop for mortgage rates because it is based on our BOE 10 year Treasury which currently is rising. Next year's inflation will also officially start to rise again having a further knock on effect on higher rates. Blame the government for that one.
The Bank Of England pretty much blamed the budget for returning inflation.
No
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Hi ,
I like it your videos a lot.
All done!!
Thanks so much
Give it time. Another cut in December and probably January
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The only reason for further cuts at this point is lack of growth?
No UK gilts are like toilet roll now - interest rates will hit the stratosphere next few yrs
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Go on James. Quick off the mark
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So the target of 2% means nothing,so what's the point,and follow the fed Wich they haven't.
Agreed
Thank you. Great content 😊
My pleasure!
Was 1 of my prediction 0.25% but it is not good sign.
0.25% is great, however their language about things going forward not so great. They have concerns about the budget and also Trump
@propertyaccelerator Trump, being a man of business likes Low Interests. Trump will start trade wars with China & e.u and worse mexico. Logically he is correct in the interest of u.s.a, but politically he is not.
Dont buy yet, n keep market stagnent!, Then the lenders will take less profit but but fees up😂
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