Bank of England cuts rates to 0.25%

[cleaniac]

Well here we go again, Mr Mark Carney has decided to make it harder for the middle class to earn any decent return on savings, make it easier for the poor to get further into debt by making borrowing  cheaper by locking them into mortgages and rates so low that they will be completely consumed by them, this will push house prices up further due to the supply of cheap finance, 0.25 percent is just ridiculous, this is a complete folly. 

Interest rates need to go up, not down. This will be the last nail in the coffin.

I advise you to not take on any debt due to carnivorous, bank of england have said that this is temporary, so if you borrow money at 0.25 percent, and in 2 years the rates have gone back up to 0.75 percent that's a 50 percent increase in the interest you will pay on the old debt at 0.25.

Bank of England are not doing this to help you, they are doing this to help themselves and take advantage of an overblown situation.

Don't fall for it..

 

[BigFoot]

I have two sets of friends refinancing atm to extend their homes but I’ve stoped giving advice ages ago as I’ve found people can’t see past instant gratification. If they put it off for a little longer and made some lifestyle changes they’d pay upfront in no time. I fear they’ll pay the price when the interest rates go up even moderately.

 

[dmw]

Well here we go again, Mr Mark Carney has decided to make it harder for the middle class to earn any decent return on savings, make it easier for the poor to get further into debt by making borrowing  cheaper by locking them into mortgages and rates so low that they will be completely consumed by them, this will push house prices up further due to the supply of cheap finance, 0.25 percent is just ridiculous, this is a complete folly. 

Interest rates need to go up, not down. This will be the last nail in the coffin.

I advise you to not take on any debt due to carnivorous, bank of england have said that this is temporary, so if you borrow money at 0.25 percent, and in 2 years the rates have gone back up to 0.75 percent that's a 50 percent increase in the interest you will pay on the old debt at 0.25.

Bank of England are not doing this to help you, they are doing this to help themselves and take advantage of an overblown situation.

Don't fall for it..

In quite happy with  the decrease, only 4 years left on my mortgage.

 

[Part Timer]

The main people who will benefit are those that run financial institutions as you can guarantee they won't reduce their loan rates but will drop their deposit rates.

 

[scottish cleaning service]

I got a call from TSB yesterday and it was like the Spanish Inquisition. Only wanted my new business account to have a £500 over-draught and I'm being passed over to the over draught police. I guess their interest rate will still be 5% for businesses.  

 

[cleaniac]

I got a call from TSB yesterday and it was like the Spanish Inquisition. Only wanted my new business account to have a £500 over-draught and I'm being passed over to the over draught police. I guess their interest rate will still be 5% for businesses.  

You will tend to find that business account providers prefer to have some form of capital growth evident before offering anything like a business overdraft. Its a bit different to that of a personal account, as they will want to see that the business isn't trading as insolvent; if you are paying in x amount, and then spending x amount with no net increase of capital after taxes its very unlikely you will get a "just in case" £500 overdraft as they will look at your business as an insolvent trading business. 

To get around this use the 3rd rule, 3rd of profits goes to wages, 3rd to taxation, and 3rd to capital reserves.

Example sales income: £1000, 

Cost to sales £200

Profit £800

Wages £266

Taxation Allocation £266

Captial Reserves £266

 Keep that up  and they will give you an overdraft, but you wont need it as you are managing the business finances correctly in the 1st place.

 

[ks789]

Well here we go again, Mr Mark Carney has decided to make it harder for the middle class to earn any decent return on savings, make it easier for the poor to get further into debt by making borrowing  cheaper by locking them into mortgages and rates so low that they will be completely consumed by them, this will push house prices up further due to the supply of cheap finance, 0.25 percent is just ridiculous, this is a complete folly. 

Interest rates need to go up, not down. This will be the last nail in the coffin.

I advise you to not take on any debt due to carnivorous, bank of england have said that this is temporary, so if you borrow money at 0.25 percent, and in 2 years the rates have gone back up to 0.75 percent that's a 50 percent increase in the interest you will pay on the old debt at 0.25.

Bank of England are not doing this to help you, they are doing this to help themselves and take advantage of an overblown situation.

Don't fall for it..

 I get what your saying, surely it would be ok for people wanting to get a low fixed rate loan? say a 5 or 10 year fixed mortgage

 

[NoName]

harder for the middle class to earn any decent return on savings,

Good opportunity to invest rather than save - shares have taken a battering...

 

[scottish cleaning service]

I don't think interest rates will go back up anytime soon. Our country runs on debt, if rates were to go up to a normal 5% then a lot of companies would go bust. Last week the US yield fell below 1% for first time ever. Oil below $40 means the frackers can't make money and their Bonds (ious) become worthless. This means the people who lent them money will probably loose all their money. Banks, Pension Funds and very rich folk so we get a domino effect. Oil below $50 and all drilling immediately stops because its not worth trying to take it out the ground. Then there is Saudi Aramco shares which are 30% cheaper and could collapse. That's why I tell folk to spend their money or put it under their mattress. ? 

 

[Iron Giant]

It's an emergency rate cut in light of Covid-19 in the hope to keep things stable, due to the projected economic battering the Uk as whole will take, ideally the budget could have seen a rise in personal allowance to hopefully boost spending thus hopefully keep us in a good state despite what is going to happen, but the goverments pot is practically empty and their borrowing will go through the roof as they talking about investing billions were needed. 

 

[cleaniac]

I don't think interest rates will go back up anytime soon. Our country runs on debt, if rates were to go up to a normal 5% then a lot of companies would go bust. Last week the US yield fell below 1% for first time ever. Oil below $40 means the frackers can't make money and their Bonds (ious) become worthless. This means the people who lent them money will probably loose all their money. Banks, Pension Funds and very rich folk so we get a domino effect. Oil below $50 and all drilling immediately stops because its not worth trying to take it out the ground. Then there is Saudi Aramco shares which are 30% cheaper and could collapse. That's why I tell folk to spend their money or put it under their mattress. ? 

It's not cash you should be storing under the mattress.

It's gold and silver.

 

[scottish cleaning service]

It's not cash you should be storing under the mattress.

It's gold and silver.

Can't go wrong with a bit of gold. I bought 3 gold sovereigns in 1989 for £500 must be worth a grand now. Physical gold is good to hang onto in case the price spikes up but can't see it staying high for long. 

 

[NoName]

Scottish I'll see you your gold and raise you Apple stock when they had just released their 1st ipod, or Netflix's when they only posted dvd (yes that's what they 'used' to do), ARM when the mainly made chips for PalmPilot's (remember them) ?

 

[BigFoot]

It's not cash you should be storing under the mattress.

It's gold and silver

 

[dazmond]

Just keep putting your window cleaning prices up and crack on......I think it's sad that so many people seem to need an overdraft facility on their bank account every month......I've never needed one for many years now......once you ve got plenty of money in the bank it's a non issue......

 

[scottish cleaning service]

Scottish I'll see you your gold and raise you Apple stock when they had just released their 1st ipod, or Netflix's when they only posted dvd (yes that's what they 'used' to do), ARM when the mainly made chips for PalmPilot's (remember them) ?

Apple sacked Steve Jobs in the 90s and was heading for bankruptcy until they grovelled Steve to come back. Dotcom boom was pretty interesting. Not sure what will be the next boom, maybe lithium or hydrogen cells.

 

[scottish cleaning service]

Just keep putting your window cleaning prices up and crack on......I think it's sad that so many people seem to need an overdraft facility on their bank account every month......I've never needed one for many years now......once you ve got plenty of money in the bank it's a non issue......

When you first begin the bank gives you a free £500 over draught which I thought would get switched over but not so. Everyone needs an over draught when starting up until they have bought everything and are established. I have grown really quick without debt but its hard to do because you need to wait till money comes in. £40k in and £40k out in two years but everything is nearly in place now.

 

[cleaniac]

Just keep putting your window cleaning prices up and crack on......I think it's sad that so many people seem to need an overdraft facility on their bank account every month......I've never needed one for many years now......once you ve got plenty of money in the bank it's a non issue......

Exactly Dazmond...

If you can maintain an overdraft; why not maintain a surplus of funds? Its just good money management.

 

[cleaniac]

When you first begin the bank gives you a free £500 over draught which I thought would get switched over but not so. Everyone needs an over draught when starting up until they have bought everything and are established. I have grown really quick without debt but its hard to do because you need to wait till money comes in. £40k in and £40k out in two years but everything is nearly in place now.

I didnt. 

If you run your business like I said as the 3rd rule; you wont need to borrow money, you say you have turned over 40k in two years (20k a year) even if you decided to put less, like 20 percent of that a year aside you should have at least 8 grand sitting in your account by now after 2 years. Even more worrying is that you have same amount going out as in, i hope that includes your taxes..payments on account..etc. Also as you get bigger and bigger, its doesn't get easier, it gets harder as everything increases by a factor of two or three. You think in 5 years that having more customers will equal more money; well it does, but it also equals more people owing you, more outgoings, more taxation, more wear and tear, equipment, the list goes on. So get into good habits now, and change from x in to x out, set some capital aside because you will need it as you grow..trust me i know what i am talking about..

Also you can be easily targeted by all sorts of companies offering various forms of products to quickly empty your bank balance in the promise its something you need for your window cleaning business; I can tell you now the majority of it is snake oil. Always ask yourself why are they trying to sell me this, its always to transfer the money from your pocket to theirs.

Keep going with the growth, that's not the difficult bit; managing the finances your business makes..thats the bit many fail on.

Good luck ! And well done for getting this far; take this advice in good faith please its not to upset you its to help.

 

[scottish cleaning service]

If you run your business like I said as the 3rd rule; you wont need to borrow money, you say you have turned over 40k in two years (20k a year) even if you decided to put less, like 20 percent of that a year aside you should have at least 8 grand sitting in your account by now after 2 years.

Made £8.5k in first year and spent £8,350 of it on PW, Vac, Poles and camera. I could now undertake Pressure washing and Vacuuming in the second year which brought in more money. Start of last financial year I decided to install a hotwater system and went into my over draught to buy it. So in September I could begin cold wfp work because diesel heater wiring wasn't working. Then in December everything was working even my electric reels. Now I can clean windows over conservatories and veluxes which brings in even more money because its half the time. I will spend a grand on a 6.7kva gennie which will bring in more money because I don't need to plug into the customers power supply. Everything I buy makes my working life easier, quicker and most of all safer. As I have said, I would rather spend £8k on a hotwater system than have if lying in the bank because of this, not a lot of folk know this which is the most important thing in business. "The Condition of the Market". The cleaning industry is rising exponentially so there is new growth all the time. This means new customers every day looking for window cleaners that can do everything, Gutters, PVC, PW Driveways & Patios, Windows, Roofs, Conservatories, Garage Doors, you name it they want it cleaned and that's where I step in. Yesterday I wfp a second story flat and woman on ground floor complained about the water messing her windows. All I did was put a sheet of 5mm Ply against her windows and carried on, she is now happy. Nothing really stops me, I always look for a solution or spend money to counteract it.

 

[dazmond]

once your established and earning decent money the trick is not spending money you havent got or borrowing money you cant pay back or driving a car you cant afford or living in a flat/house with  massive mortgage/rent bills to pay every month......it sounds so simple but its true.....

get ahead of your finances/bills so your not relying on an overdraft facility when emergencies happen (or you owed a fair wedge of money in your business) 

just dont live above your means and all will be well......