Member Info for hardup

We may have already seen the peak in quoted mortgage rates, experts say.

The Bank of England’s biggest rate rise in 33 years will not push up fixed rate mortgage costs because deals have already been “overpriced” in the wake of Liz Truss’s chaotic mini-Budget, analysts predict.

The Bank is expected to announce a 0.75 percentage point rise in interest rates on Thursday, which would bring the Bank Rate to 3pc.

Normally, Bank Rate rises filter into higher fixed-rate mortgage rates. But this time, experts said lenders have already added such a large “Truss premium” to their fixed-rate prices, the Bank’s interest rate decision will make little difference to homebuyers.

Jonathan Burridge, of We Are Money, a broker, said: “In fact, fixed rates may continue to reduce some more.”

Andrew Wishart, of Capital Economics, said: “The drop back in market interest rates now sober policymaking has returned means we may have already seen the peak in quoted mortgage rates.”

Graham Cox, of the Self-Employed Mortgage Hub, a specialist broker, said: “There’s no doubt that fixed rates have become overpriced since the mini-Budget fiasco. It’s therefore entirely possible that none or only part of the Bank of England’s Base Rate hike will be passed on by lenders.”

Borrowers on variable rates, such as trackers, which are pegged to the Bank Rate, will see costs rise, however.

https://www.telegraph.co.uk/personal-banking/mortgages/why-mortgages-could-get-cheaper-even-though-interest-rates-rising/

Morning Falky
"The sp may go up or down today, wait & see... IMHO"
You don't make it easy for yourself do you! lol

LYG fell -3.1% last night after FED hiked rate.......wonder if that will induce a fall at Market open today for LBG?

SUFC
"Good news if you a Bank :-)"
Oh really? LYG closed down -3.1% today after FED hiked rates 0.75%.

"Didn’t take long before it tanked"
DOW initially jumped up +322 pts after FED hiked rates 0.75% only to fall -900 pts from the days high after FED Chair Jerome Powell spooked the market by saying “We still have some ways to go and incoming data since our last meeting suggests that the ultimate level of interest rates will be higher than previously expected," adding that it was “premature” to talk about pausing hikes.

Spineless MPC will bottle it again and go for 0.5% maximum.

skier1
£400 per month for 1 year at APR 5.25% would be worth £4938......so you have made £138 in interest. Then reverts to APR 0.4%. Not much use for someone with £20,000+ to invest for income.

67Sam
"its capped max 400 pcm for one year
they pay 0.4% club saver"
You beat me to it! lol

skier1
"LLOY is currently offering a bank savings account, risk-free, paying 5.25%.."
What is the maximum amount you can put into this account?

Falky
It was you who fired the first shot today.....lol. You take it too serious.......I think it is you that needs to chill.

Falky
"Brix.......Please stop wind me up cos can't take it anymore."
You need help Falky.....call this number and they will listen to you.....116 123

Barclays raises Lloyds price target to 55 (50) pence - 'equal weight'
Another broker upgrade but SP trend heading the opposite direction! These broker upgrades are as much use as a chocolate fire poker! lol

mick-b
"The whole of Europe was under German military occupation."
Switzerland, Spain and Portugal were not under German Military occupation. They remained neutral and were never occupied.

Falky
RKH?

Another frustrating day in the life of a Lloyds investor. Market flying and Lloyds grounded. Never mind, Christmas around the corner to cheer us up! Ho ho ho!

The Britcoin revolution! Rishi Sunak plans to introduce official digital currency to rival cash in 'biggest upheaval in the monetary system for centuries'
Bank of England would establish a direct digital equivalent to physical money.
Supporters say the move will give the economy a boost during a financial crisis.
Could slash cost and time it takes to make payments online and transfer money.

Cash in people's pockets would be superseded by a new 'Britcoin' digital currency in a plan being pushed by Chancellor Rishi Sunak.

In what Treasury insiders say would be the biggest upheaval in the monetary system for centuries, the Bank of England would establish a direct digital equivalent to physical money and take control of it in the same way as sterling.

Its supporters in the Treasury say that it would allow the Bank to give the economy a boost in times of financial crisis by paying the 'Britcoins' directly into people's bank accounts.

It could also slash the cost and time it takes to make payments online and transfer money around the banking system.

Britcoin could also cut banking costs dramatically for small firms. However, critics warn that a digital version of the pound could lead to greater financial instability – making it harder for the Bank to regulate the economy with monetary policies such as setting interest rates.

There are also fears the introduction of Britcoin would lead to higher loan and mortgage rates as millions of people switched cash to central bank digital currency, eating into the amount of money high street banks have on deposit to lend to borrowers.

A taskforce of Treasury and Bank officials set up to examine the merits of Britcoin – known as the Central Bank Digital Currency – is expected to report to Mr Sunak by the end of the year.

The Treasury is understood to be more keen than the Bank of England on the idea of creating an official British digital currency to compete with the rise of Bitcoin because they are wary of the huge numbers of people piling into cryptocurrencies. Some investors have lost vast sums as the price of Bitcoin has gyrated wildly.

https://www.dailymail.co.uk/news/article-9821855/Rishi-Sunak-plans-replace-cash-official-digital-currency.html

88
https://www.lse.co.uk/news/LLOY/london-broker-ratings-jefferies-raises-centrica-and-drax-to-buy-lnoujm8ra8d8vcd.html

88
The SP had climbed to 49.7p in September then fell when the windfall tax rumour was reported and then the Mini-Budget announced. If the Markets favour the new Budget when announced hopefully SP could get back to that level if it is also confirmed no windfall tax on banks.

DB2014
I don't expect much move on SP until after the Budget and it is confirmed no windfall tax on banks.

Relief for banks ahead of the budget, but interest rates are set to rise to 3%.

The government last night quashed suggestions that it is considering a windfall tax on banks as one of the measures to plug a hole in its finances at next month’s budget.

Two senior sources close to prime minister Rishi Sunak and chancellor Jeremy Hunt played down the idea that they were looking at ways to impose additional taxes on banks. The news will come as a relief to the City, which had feared a raid on bumper profits derived from rises in interest rates.

On Thursday, the Bank of England is expected to increase rates by three-quarters of a percentage point to 3 per cent, in the largest single move since the efforts on “Black Wednesday” in 1992 to prop up the pound. It would be the highest rate of interest for 14 years.

Bankers have been lining up to warn Hunt that any tax raid on the sector would hamper ambitions to bolster the City after Brexit and deter foreign investment in Britain. When Sunak was chancellor, he had been looking at ways to boost the City, and as prime minister, he is thought to remain keen to give the financial sector a competitive edge.

The discussions between Sunak and Hunt are thought to be focused on the 8 per cent surcharge that banks pay on top of corporation tax. When Sunak was chancellor, he said he would cut this to 3 per cent alongside his plans to raise corporation tax from 19 to 25 per cent. This would give an overall rate of 28 per cent. As Hunt has not said in public whether he intends to press on with the cut to the bank surcharge, lenders have been warning that they could face a total corporation tax levy of 33 per cent.
While this is currently the topic of discussion before the budget on November 17, the government sources expect Hunt to cut the surcharge to 3 per cent as planned, leaving banks with a 28 per cent rate. This would be much lower than feared, although it would still amount to a small overall rise. UK Finance, the industry’s lobby group, warned last week that London’s banks already pay more tax than those in New York and Dublin.

Windfall taxes on the energy sector will also be on the agenda this week when BP announces bumper third-quarter profits on the back of higher oil prices — expected to be in the region of $6 billion (£5 billion) for the three months.

Hunt had been expected to publish his budget tomorrow, along with forecasts from the Office for Budget Responsibility, but this was delayed by 17 days after Sunak won the contest to replace Liz Truss. It means that when the Bank’s monetary policy committee meets this week to set interest rates, it will not have a full picture of the measures planned.

https://www.thetimes.co.uk/article/ministers-cool-on-bank-windfall-tax-h65hrfbrw