MP calls for talks on rate cut threat (From Swindon Advertiser)
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MP calls for talks on rate cut threat
8:10pm Friday 2nd January 2009 in News
AN MP has said she will want talks with Nationwide if it follows through with threats not to pass on interest rate cuts to borrowers.
Nationwide released a statement yesterday saying that if interests rates were reduced by the Bank of England to below two per cent it will invoke a clause in contracts of tracker mortgage customers enabling it to stop reducing the rate.
But Anne Snelgrove, MP for South Swindon, said it was vital that the firm passed on any saving to customers.
“Should there be a further cut in interest rates I will be talking to Nationwide about what it can do to pass on the cut to customers,” she said. “I was very pleased that Nationwide did follow the Bank of England when it reduced the base rate to two per cent last month.
“It is important that lenders pass on interest rate cuts – we need to do whatever it takes to help businesses, people, and the wider economy in Swindon.
“Many people in Swindon will remember when on Black Wednesday the Conservative Chancellor, advised by David Cameron at the time, put up interest rates from 10 per cent to 12 per cent on Black Wednesday – we must not deal with a financial downturn in that way.”
However, the bank said it is doing as much as it can to support its 1.4m borrowers and its 10m savers.
A spokesman said that because of a clause in tracker mortgage contracts it could have chosen not to pass on last month’s one per cent interest rate cut.
But it waived the clause at that point, passing on the full cut.
A bank spokesman said: “Clearly we are always happy to talk to Anne about the way we are running our business, but we have to act in the interest of our members as a whole and that includes savers.
“We are doing the best we can to support our customers.
“We have already done an extraordinary amount to support our borrowers.
“But we also have to be concerned with what is happening to savers rates.”
He added that the bank currently has 200,000 customers on tracker mortgages.
Comments(37)
Always Grumpy
says...
8:25pm Fri 2 Jan 09
Snelgrove obviously hasn't any concerns for those! If every saver withdrew their money and put it under the mattress then this country would collapse within days. Her understanding of economics is zero - rather like her government.
Why doesn't this odious woman just crawl back into the woodwork from whence she came?
PeeveD
says...
8:26pm Fri 2 Jan 09
“Should there be a further cut in interest rates I will be talking to Nationwide about what it can do to pass on the cut to customers,” she said. “I was very pleased that Nationwide did follow the Bank of England when it reduced the base rate to two per cent last month.
And what the hell makes you think they are going to listen to you after they have made it quite clear what they are going to do?
What makes you think a few words from third rate wannabe politician is going to change their mind?
We might as well have BOB FM having a quite word in their ears for all the good it would do!
(Don't let the ego get over inflated Bobby... I class you as a fourth rate wannabe politician!)
Itssomewheretowork
says...
8:43pm Fri 2 Jan 09
Let's not forget that our MP AS, who must have the senior management of the Nationwide shaking in their shoes awaiting meeting up with her, will get a very nice payoff when she is ousted from Parliament in hopefully the near future. She must be very pleased to know that the payoff is in no way linked to one's performance as an MP. I guess her highlight of the year must be protesting locally to keep the sub-post offices open and voting to close them in the Commons.
BWB
says...
9:17pm Fri 2 Jan 09
Grumpy..I absolutely agree with you.
Its savers money that enable them
to do their business and if savers
are no longer to be rewarded,
then whats the point of saving with
them. might do better in an
Post Office account,cant be any
worse.
who dat?
says...
9:17pm Fri 2 Jan 09
your excuse for a government has already screwed pensioners , present and future - excepting MPs , of course!Now leave savers alone - we are all going to struggle because of McBroon and his little Darling without even more interference.
Try and save a few post offices !!
Robh
says...
9:48pm Fri 2 Jan 09
These companies need to make a minimum amount simply to run the business . It may be 2% or 3% but it is their base rate. Without this the business would not exist.
Buster
says...
10:41pm Fri 2 Jan 09
It's just another band wagon to her.
Her party is responsible for the massive shortfalls in company pension schemes and the demise of final salary schemes (except MPs).
Gordon Brown has robbed, to the tune of over £100 billion, all the hard working people who set aside their money each month to pay for their retirement.
She's a disgrace and I pray to god that she doesn't get re-elected, after all, she is only entitled to an MPs gold plated final salary pension if she serves 6 years in office.
She has to go!
Donkey
says...
10:42pm Fri 2 Jan 09
I have savings, I am a Nationwide customer ... I consider my money safe, and in current financial markets internationally, steps are being taken to try and take a reasonable line back to sanity. The loss of interest to myself is unfortunate, but I see the broader picture of those who have over-borrowed, over-committed their financial incomes and have put the rest of us in the mire.
Do those with decent savings feel that we should abandon any chance of getting things back on course? Experts on today's television news are confident that in a few months the banks and building societies will have sufficient funds to begin limited and secure lending again.
Nationwide appear to want to begin a trend and back savers and not borrowers this time around. As a saver, that's great for me having lost quite a bit of interest with the previous cuts, but sacrifices need to be made for just a little longer. The thing is, the word 'greed' comes to light again from those of a certain nature, and I feel that Anne Snelgrove is fulfilling the directive which will, in the end, help us all to get back on track.
Dosomethingmutley
says...
12:08am Sat 3 Jan 09
ourtone
says...
6:35am Sat 3 Jan 09
9:17pm Fri 2 Jan 09
Grumpy..I absolutely agree with you.
Its savers money that enable them
to do their business and if savers
are no longer to be rewarded,
then whats the point of saving with
them. might do better in an
Post Office account,cant be any
worse.
Sadly this is not entirely the case.
Google “Fractional Reserve Banking,” and scare yourself
Always Grumpy
says...
8:02am Sat 3 Jan 09
Donkey wrote:I've already made more than enough sacrifices thank you.
Without the usual posters one-sided view of everything on here, perhaps we could look at both sides of the coin for a change ... no pun intended?
I have savings, I am a Nationwide customer ... I consider my money safe, and in current financial markets internationally, steps are being taken to try and take a reasonable line back to sanity. The loss of interest to myself is unfortunate, but I see the broader picture of those who have over-borrowed, over-committed their financial incomes and have put the rest of us in the mire.
Do those with decent savings feel that we should abandon any chance of getting things back on course? Experts on today's television news are confident that in a few months the banks and building societies will have sufficient funds to begin limited and secure lending again.
Nationwide appear to want to begin a trend and back savers and not borrowers this time around. As a saver, that's great for me having lost quite a bit of interest with the previous cuts, but sacrifices need to be made for just a little longer. The thing is, the word 'greed' comes to light again from those of a certain nature, and I feel that Anne Snelgrove is fulfilling the directive which will, in the end, help us all to get back on track.
There's nothing greedy in wanting at least some interest on my savings to help me, as a pensioner, maintain some sort of reasonable living standards.
As to the odious Snelgrove fulfilling any directives, all she is doing is following her party line, as usual.
It's largely her government that has created the situation we are in at the moment and they are incapable of getting us out of it.
RFM
says...
9:51am Sat 3 Jan 09
Bobfm
says...
10:01am Sat 3 Jan 09
That aside, the Nationwide is not a bank, secondly whilst from a borrower point of view a lower rate would obviously be the first choice, as has been pointed out, if all the UK savers withdrew money from building societies then the whole system would fold. There has to be a fair balance, the other thing of course is did Nationawide take any tax payers Money?. Perhaps Anne should be having a go at the banks that did, like Lloyds who are doing untold harm to their business customers, me being one of them.
Interestingly Mandy at the BERR cares so much about business that you don't even get a courtesy card reply from his department when you write to them, as I did 3 months ago. Labour care my ar*e
amlorusso
says...
1:38pm Sat 3 Jan 09
According to Nationwide they have not taken any tax payers money, certainly the government owns no part of Nationwide. If that's true then they have the practical and moral backing to tell the government to keep it's nose out of it's affairs. It's been repeatedly pointed out that under current circumstances LIBOR, which is what banks borrow out at bears no resemblance to the Base Rate.
The Nationwide is a mutual society, and while they have written down bad debts, like any financial institution in any year, they management have not indulged in the silliness that other banks have and remain solvent.
I don't want to see Nationwide compromise their sound management of the society. As people have posted previously in order to reduce their lending rate, they would have to compensate by lowering their savings rate, or take a hit on their balance sheet and compromise their stability.
ItsPavAgain
says...
1:45pm Sat 3 Jan 09
BWB
says...
1:54pm Sat 3 Jan 09
OURTONE.
Thanks,I found it very interesting.
We have a lot to learn.
Fractional Reserve Banking
Big Mac
says...
1:55pm Sat 3 Jan 09
We now own Northern Rock, thanks to Mr Brown deciding to buy it with our money, yet they don't do what the government beg of them either. In fact, they seem to take great delight in doing the exact opposite of what the Darling & Brown clown show ask of them.
Now that the Bank of England are being forced by the government to slash interest rates, when will Mr Brown admit that their supposed 'independence' is a complete charade?
Still, I guess interest rates are about the one thing left that Labour can actually do something about.
Their 2.5% VAT cut has been a dismal failure, with spending actually down on the same period last year.
What really makes me laugh is that most people are now paying
Big Mac
says...
2:07pm Sat 3 Jan 09
less than 6% on their mortgages, whereas many credit card companies are charging their 'customers' anything from 20 to 30% interest. That means many people are paying out more each month on their cards than on their homes - yet Labour are doing nothing whatsoever about it.
In fact, some credit card companies have hiked up the repayment rate for those who don't clear their balances each month - leaving those in debt with even less disposable income.
It's all very well Snelgrove and Labour claiming that the Tories are 'doing nothing' about the economy, but the fact is that Brown took us into this and it's Brown who claims to have 'saved the world', when actually they've done nothing. If anything, things are getting worse with no sign of any upturn for at least another two years.
As for Black Wednesday, that's going to look like a walk in the park compared to what 2009 has in store.
BWB
says...
2:29pm Sat 3 Jan 09
BIG MAC (help)
many credit card companies are charging their 'customers' anything from 20 to 30% interest. That means many people are paying out more each month on their cards
My Son is in this desperate situation,(yes it is his fault).
He just cannot meet the payments.
What will they do?.He is desperate
Big Mac
says...
2:58pm Sat 3 Jan 09
Labour loves to pin the current problems on the US sub-prime mortgage market, but I reckon 2009 is going to see many UK credit card holders simply refuse to pay because they're unable. Either that or they'll go the IVA/Bankruptcy route and card companies will end up getting less/nothing back in any case.
Fagin
says...
3:19pm Sat 3 Jan 09
I extend my heartfelt sympathies to the Smellgross woman for all the abuse she receives for her rather modest ambitions . After all , her leader saved the world ; she just wants to save her seat .
Many of us , mainly the self- reliant , are receiving no help at all in this crisis and , let’s face it , the people on tracker mortgages have already seen
significant reductions in their monthly repayments . As already mentioned , the Nationwide do have to balance the needs of both borrowers and depositors : the latter , the most prudent in today’s society , have seen dramatic reductions in their income over the last few months .
Those who can will overcome their problems by budgeting carefully and , perhaps , working a little harder . What kind of example is this MP going to show us and her colleagues . Will she accept a reduction in her , more than adequate , salary and cut down on her expenses ?
Of course not : and ZanNu Labour will continue trying to appeal to the feckless , irresponsible factions of society thus prolonging the crisis rather than bringing it to an end .
The VAT debacle was a great mistake . Eighteen billion pounds just frittered away . To those who may wish to criticise me for trying to deprive “ hard - working families “ of this reduction , may I remind them that most of today’s necessities do not carry the burden of this tax and the major ones that do , especially transportation and power , either had no cuts applied or , in the case of road fuel , the reduction was countered by an disproportionate increase in Excise
Duty .
BWB
says...
4:27pm Sat 3 Jan 09
Big Mac wrote:
BWB, the only thing that might help your son is if there are mass defaults on credit card payments and the government are forced to step in to do something about what is now just a complete rip-off.
Labour loves to pin the current problems on the US sub-prime mortgage market, but I reckon 2009 is going to see many UK credit card holders simply refuse to pay because they're unable. Either that or they'll go the IVA/Bankruptcy route and card companies will end up getting less/nothing back in any case.
Many thanks Big Mac.
I will tell him to hang on in there
I am a pensioner and will try to
help him when it gets nasty.
Thank you for answering my question
Casual Observer
says...
5:42pm Sat 3 Jan 09
www.moneysavingexper
t.com/loans/debt-hel
p-plan
(unfortunately the adver web team insist on breaking up URLs so you may need to paste it in bits)
Good Luck!
BWB
says...
6:23pm Sat 3 Jan 09
Casual Observer,
Many thanks C O.
Jackanory
says...
6:27pm Sat 3 Jan 09
who dat?
says...
6:51pm Sat 3 Jan 09
House
says...
6:54pm Sat 3 Jan 09
House
says...
7:12pm Sat 3 Jan 09
Big Mac
says...
1:07pm Sun 4 Jan 09
"Debt Relief Orders: Planned for introduction in April 2009, these should allow consumers with debts of less than £15,000 and minimal assets or surplus income to write off debts without a full-blown bankruptcy"
Might be of interest to your son?
BWB
says...
1:25pm Sun 4 Jan 09
Many thanks Big Mac.
who dat?
says...
6:16pm Sun 4 Jan 09
Bobfm
says...
6:46pm Sun 4 Jan 09
Just in case you didn't know Anne, HMG signed an agreement which means our contribution is not based on the Pound/Euro as at 31/12 2008, eg: 1.05 euro's to the pound, but at 2007 rates of 1.40 Euro to the pound, meaning the extra 1.5 billion payable, or an extra £18.75 for every person in the UK, taking our contribution to nearly £1000/person.
Big Mac
says...
10:34am Mon 5 Jan 09
It means they can implement all of the things they want to implement, but which nobody else wants, and explain it all away as not being their fault and all the fault of the EU.
That's the kind of cynical blame shifting that I'm sure Mr Brown is quite happy to use our money to pay for.
PeeveD
says...
11:08am Mon 5 Jan 09
Bobfm wrote:You really are a funny little man aren't you?
PeeveD you may consider me to be a fourth rate politician , however by your own admission on another thread you have admitted being a liar, so how do we know you are telling the truth now. That aside, the Nationwide is not a bank, secondly whilst from a borrower point of view a lower rate would obviously be the first choice, as has been pointed out, if all the UK savers withdrew money from building societies then the whole system would fold. There has to be a fair balance, the other thing of course is did Nationawide take any tax payers Money?. Perhaps Anne should be having a go at the banks that did, like Lloyds who are doing untold harm to their business customers, me being one of them. Interestingly Mandy at the BERR cares so much about business that you don't even get a courtesy card reply from his department when you write to them, as I did 3 months ago. Labour care my ar*e
a) at what point did I either lie and then admit to lying?
b) I retract my remark about you being a fourth rate politician....
You don't even rate as politician period!
Bobfm
says...
5:25pm Mon 5 Jan 09
10:57am Mon 5 Jan 09
Bobfm wrote:
You said you were a taxi driver, 'And finally, I hear so many times landlords of various pubs whining about the cost of taxis... I don't hear you complaining when we drop the punters off at yours do I?' There is no Royal we. And then admitted you weren't: 'PeeveD, Swindon says... 9:51pm Thu 1 Jan 09 Ok Bob.... No... I am not a taxi driver' Wrong again, I compared the two and there is very little material difference. I also glanced at another 5 policies, it really is quite simple you put in a question to Google and hey presto you get links to read, you should try it some time.
'Silly Bobby.... So if you pull a pint it makes you a landlord does it?
If you clean the toilets it makes you a barman does it?
If you shout off under the UKIP banner it makes you a politician does it?
As for the differences in local council policies concerning taxi/private hire drivers... I suggest you have a loser look... I think you will find those small differences actually have quite a large impact on the individual!
Can't bear to be wrong can you?
Typical wannabe know-it-all!
I think it is you PeeveD who are highlighted as not wishing to be wrong, you claim you are ataxi, then you are not, one assumes you are now suggesting you clearly work within a tax firm in some capacity or am I misreading that too. I also note on the Council Sickness thread you now appear to do their rosters. Quite a busy chap I would say.
You never know fellow readers we may just get to know what PeeveD actually does do for a living, assuming of course they do work.
PeeveD
says...
7:43pm Tue 6 Jan 09
I am however connected with a taxi/private hire firm... so where is the lie?
On the SBC sickness thread I stated that I produce rosters... I did not say I do the rosters for SBC.
What I do or who I do it for should be of no concern to you or others. This is supposed to be a forum for the publication of peoples opinions.
YOU are the self obsessed fool who tries,without much success, to push yourself to the fore along with your ridiculous "political party".
Most readers don't give a **** who I am or what I do... they are happy just to discuss the issues... I note that many of your posts do nothing but bring derision on yourself or degenerate into an argument... the usual common denominator being you.
It must be so difficult remaining on your self styled pedestal whilst continuing to be so incredibly pedantic and boorish. Still, as those are the two words that sum up UKIP we shouldn't be surprised.
PeeveD
says...
11:49pm Wed 7 Jan 09
My ribs have not been tickled so much in such a short period of time for years.
I will update you in due course on my "findings"!
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