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Deleted User YDKXO
Guest
The specific intention of the BoE 1.5% rate cut is to kick start the economy so will that encourage anyone to go out and buy a new boat now and save the UK boating industry?
Bank rate at 3%. Will that encourage you to buy a new boat?
Nautorius
Well-Known Member
..obviously this is dependent upon me ever working again but when I am I intend buying a cheaper seconhand boat so that someone else can buy a new one! Also intend buying a newer Landy as well but no chance will I buy new anything at the moment! /forums/images/graemlins/cool.gif
PowerYachtBlog
Well-Known Member
I think it will depends on many factors, first how once personall balance sheet is coping and second if the bank gives you the money
I lost half a dozen deals in the last months for tighteening credit from the banks, so its not really only about the interest rates, banks are asking for 30% gurantess (if you are luck!!) versus the 10% thay used to a year ago
I lost half a dozen deals in the last months for tighteening credit from the banks, so its not really only about the interest rates, banks are asking for 30% gurantess (if you are luck!!) versus the 10% thay used to a year ago
epervier
Well-Known Member
Bank rate at 3%. Will that encourage you to buy a new boat?
No!
I would never buy new the depreciation is far too heavy for my blood, buy used, and most of the problems have been resolved, also they come with a lot more kit already fitted/included in the price. /forums/images/graemlins/grin.gif
No!
I would never buy new the depreciation is far too heavy for my blood, buy used, and most of the problems have been resolved, also they come with a lot more kit already fitted/included in the price. /forums/images/graemlins/grin.gif
penpal
Well-Known Member
Well, I just pulled out of a deal, due to my wife being particularly nervouse about all the bad press painting a picture of the end of the world. It was a pitty, i had the marine finance arranged and a good price. mind you the marine finance is 3.25% over 6% base. so it was a lot higher than putting it on your mortgage.
gjgm
Well-Known Member
and the derivatives suggest that we are heading towards 2pct...
ok, omit "brand" from new, and maybe some responses would be different.
One aspect is what investment opportunities there are. If you are lucky enough to be in surplus, then 3pct before tax = 1.8pct, might mean you may as well spend it.
I doubt we will see credit ease much for some time. The banks cant lend cheaper to the public at cheaper rates until 1. they ve got their capital bases sorted out again and 2. the liquidity markets improve significantly, and 3. they certainly arent going to be chucking loose credit at anyone for a very long time indeed.
Still, this must be oil in the wheels.
ok, omit "brand" from new, and maybe some responses would be different.
One aspect is what investment opportunities there are. If you are lucky enough to be in surplus, then 3pct before tax = 1.8pct, might mean you may as well spend it.
I doubt we will see credit ease much for some time. The banks cant lend cheaper to the public at cheaper rates until 1. they ve got their capital bases sorted out again and 2. the liquidity markets improve significantly, and 3. they certainly arent going to be chucking loose credit at anyone for a very long time indeed.
Still, this must be oil in the wheels.
Whitelighter
Well-Known Member
TBH, only if I can secure an over BoE base deal on a marine mortgage as opposed to an over FHBR deal. The LIBOR rate has begger all to do with the bank of england and until that comes down few will see the rate reduction reflected in the true cost of borrowing.
I think its the right move, and it sends a very solid message. cant help thinking it comes a little too late to stave off the worst...
I think its the right move, and it sends a very solid message. cant help thinking it comes a little too late to stave off the worst...
Ripster
Well-Known Member
I have just bought one and took the view that I may as well have some of me hard earned floating about on the water as being lostby bankrpt banks or earning 2/5 of b*ggerall in a savings acc. All my investments took a nosedive too... so that made me even more determined to have a spend before anymore was eaten by the markets! That was my excuse to the wife anyway....lol
But would I have borrowed to buy one....hm prob not!
But would I have borrowed to buy one....hm prob not!
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Deleted User YDKXO
Guest
What is the FHBR at the moment and has it followed the bank rate or LIBOR?
jonnybuoy
Well-Known Member
Unfortunately Joe Public can't borrow at 3% - unless you already on a BoE tracker (lucky you) lenders yesterday either pulled their tracker rates offers or increased the premium accordingly. I imagine marine mortgages will similarly not see much benefit. The main beneficiary of the rate cut is UK Government who now owe so much & need to borrow soooo much more that they have no choice but to strong arm BoE into reducing rates.
Whitelighter
Well-Known Member
[ QUOTE ]
What is the FHBR at the moment and has it followed the bank rate or LIBOR?
[/ QUOTE ]
FHBR currently 6.5% (a disparity of 3.5% is a new record, normally no more than 0.5-0.75% AWAY FROM BoE) and LIBOR is hovering around 5%
There shouldnt be this level of disparity between the rates and it underlines just how fecked everything is and also that no-one is very sure where its all going.
What is the FHBR at the moment and has it followed the bank rate or LIBOR?
[/ QUOTE ]
FHBR currently 6.5% (a disparity of 3.5% is a new record, normally no more than 0.5-0.75% AWAY FROM BoE) and LIBOR is hovering around 5%
There shouldnt be this level of disparity between the rates and it underlines just how fecked everything is and also that no-one is very sure where its all going.
Duster
N/A
No - and I have just cancelled a new car I had on order. As a bank / building soc saver my income could go down £7.5k on top of £2.5k from the last cut, if these are passed on in full. Short term I am OK with a fair amount of fixed rate at 6.5 to 7% but this is only for 2 years.
Tommorows project is to start to look at euro / other currency foreign investments as this will surely pull the pound even lower and other countrys rates seem to be holding up better.
Regards mikej
Tommorows project is to start to look at euro / other currency foreign investments as this will surely pull the pound even lower and other countrys rates seem to be holding up better.
Regards mikej
lazyliz
Well-Known Member
Or buy mine, but don't think so.
mlthomas
Well-Known Member
Yes, definitely would - but need to move the current one on first.
bumpy_the_dog
Well-Known Member
A new boat? Absolutely not.
I am thinking of buying a used boat, but it'll be quite a bit smaller than Plan A, and I'll work on the basis that it'll have hardly any re-sale value, so it will have to represent money I can afford to walk away from.
I am thinking of buying a used boat, but it'll be quite a bit smaller than Plan A, and I'll work on the basis that it'll have hardly any re-sale value, so it will have to represent money I can afford to walk away from.
oceanfroggie
Well-Known Member
Would never borrow money to buy a boat anyway!
smayers
New Member
At end of day a lot of people bought boats who couldnt afford to on cheap credit. Banks arent about to start lending to them again no matter what so supply is going to grossly out weigh demand for while to come.
Cant see the boating market turning before housing market so when that happens I might start looking. All these non-essential luxuries going to be last to recover.
They can cut rates to zero but at end of day banks are all bankrupt and still need to delever and build balance sheets. Last thing they going to do is lend money to hoorah Henry to buy a new boat!
Cant see the boating market turning before housing market so when that happens I might start looking. All these non-essential luxuries going to be last to recover.
They can cut rates to zero but at end of day banks are all bankrupt and still need to delever and build balance sheets. Last thing they going to do is lend money to hoorah Henry to buy a new boat!
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Deleted User YDKXO
Guest
I didn't appreciate how far FHBR was from the bank rate. It makes you wonder why the BoE have a bank rate at all when real borrowing rates bear so little relationship to it. So, apart fron existing bank rate tracker mortgagees, who is going to benefit from this low BoE rate?
Whitelighter
Well-Known Member
pretty much no-one.
the problem is the banking system is still locked up with very little liquidity sloshing around.
It is getting better, LIBOR has slowly been coming down from the high of 7.7% a few months agao but banks are still ver cautious about lending each other money as they are still unsure about which of them is 'safe'
the problem is the banking system is still locked up with very little liquidity sloshing around.
It is getting better, LIBOR has slowly been coming down from the high of 7.7% a few months agao but banks are still ver cautious about lending each other money as they are still unsure about which of them is 'safe'