Will it make a difference????

Well,

Big news yesterday with the interest rate cut by 1.5%!!!  Will it have an impact? Too soon to tell yet, but will keep you posted. But, I have to say, in the last week or so there has definitely been increased activity in the market. Getting more viewings in so hopefully it might get a bit better. The rental market is very busy still, very busy with that side. So hopefully you guys that are selling to move to warmer climes might be interested in this. Anyone need any advice or tips let me know, happy to help

Great to hear Candyfloss, maybe we will sell our house now and then its vivo Espana

Good luck Acapulco,& thanks Candyfloss. Selfish little old me is more worried whether it will help the GB state pension spread out a wee bit further again....not holding my breath,i admit (can't anyway-i'm asthmatic!)

 It's going to be interesting to see what happens.  That's one huge rate cut!

Well, I suppose things couldn't get any worse....could they?

Justin

This is the news I have been waiting for with baited breath!

As most of you know, we are moving to Spain at the end of this month, so this news is very welcome as we still own our British House.

Had thought that they way things were going that we would have to rent the property for six months to a year before selling it, however I have been keeping an eye on the House Price deprecation figures for month on month, and it would appear to me that things are now stabilising.

I know that there has been a drop of almost 15% across the board on House Prices right across the nation in the year to date from last October, however for the last 4 months in a row the month on month depreciation has dropped and looks set to be the same this month, possibly due to people not willing to lower their price any further, also possibly due to the lack of good properties on the market.

Now with this huge drop in interest rates and people knowing that there aren't that many good properties on the market, and the month on month deprecation figures slowing right down, now could be a good time to buy and pick up a bargain! OK, the price MAY lower over the next 3 to 6 months, however in 1 or 2 years time, the house will be worth more than it is now! And in 5 years time I would estimate back to the prices they were 18 months ago.

If the Major Banks DO pass this 1.5% interest cut on in full, then I think we will start to see the market moving, because the prices are now very good, and the monthly repayments on an average mortgage of £250,000 down by more than £260 per month.

Hi Techno,

Being blonde in the other thread (by George she's got it now )

I'm not going to peak too soon, but let's hope that this increase in activity is a good sign of things to come. The prices have fallen, no doubt about it, so pitching the price right is the key, as well as being in tip top condition in a competitive market. As for the rental side if you do go down that route, the demand seems to be for unfurnished and modernised,again in tip top condition.

Most of the tracker mortgages have been pulled (surprise, surprise) but there are deals out there. First time buyers are starting to come back. Maybe it won't take as long to get back on track as we once feared. But, as I say not peaking too soon

Great news Gina.  Do you know if the euribor rate has gone down too?  Also does anyone know if it's possible to remortgage in Spain to an interest only  mortgage?  Current Spanish lender is useless and desn't even bother to reply to phone calls or emails.  Any ideas? 

I do know that the ECB lowered interest rates by 0.50% yesterday, so that 'should' also effect the Euribor rates by the same amount.

Don't forget, that most Mortgage lenders always charge something like 1% or 1.25% above Euribor rates!

More significant is the LIBOR (inter-bank lending rate) This hasn't come down anywhere near as much as BoE base rate, and it seems only a couple of the major banks (Lloyds & Abbey) announced that they would pass the cut on to borrowers immediately.

As for pensioners relying on savings income (there are probably quite a few here in Spain) it's bad news, and rather than reacting positively to the news as many expected, the stock market plunged, as traders took it as a sign that the BoE thinks this recession is going to be a lot worse and a lot longer than some originally predicted. So anyone with stock market related savings or investments is also in for a rocky ride.

Hi Jane

This one always puzzles me too. Our spanish mortgage only ever seems to go up. Funnily enough have been speaking to someone this week about some possible options, (spooky week again) I'll pass his name on to you. Based near us.

Yes, Roberto, that is the bad side of it, I agree. That's what worries me about when we eventually retire. Can't win can we?  

It isn't just LloydsTSB & Abbey that have announced that they will pass on the full 1.5% cut in base rate.

It was also announced yesterday that Nationwide, HBOS, RBS/NatWest & Northern Rock will do the same.

http://news.bbc.co.uk/1/hi/business/7716086.stm 

Noreen

Thanks Noreen for the link. I missed reading that one. Been too busy selling houses LOL!   When are you off to Spain again? Just booked some for April, BMI Baby had some good deals.

Only after Mr.Darling threatened to get angry with them! And as I understand it, the cuts will only apply to existing tracker mortgages. Won't necessarily mean new applicants will get good deals, so unlikely to spark much of a revival.

I know Roberto,

They didn't waste any time pulling the new trackers. .