The scheding of half the Northern Rock mortgage book can only make securing a good mortgage deal more difficult. During the credit boom supply for mortgages was greater than supply. Now that demand is greater that supply prices are higher.

Costas, Cyprus,

How is it your money Geoff? unless you are a shareholder. Yes we all get punished, but you may want to address how and why this government allowed a debt fuelled consumer boom to take place - remember all those carol voderman adverts pushing to conolidate debt? Although the housing falls started in the US the UK is seen as one the countries also particularly at risk. High interest rates, recession etc. are all part of the solution to correct the excesses of recent years, we better get on with it.

Bobby, London, UK

The Banks obviously have 'other fish to fry'; they are unlikely to commit funds to a depreciating asset such as UK property when the investment returns are far greater in Far East economies.

john, milton keynes,

Why should rates be reduced just to help the banks who don't then pass on the benefit to their customers. The ordinary Joe suffers all round and the banks get away with it. No sign of them putting up their rates on savings strangely enough. If the rates are lowered to help industry there is no point of the banks won't pass it on. Instead we all suffer through higher inflation, and reduced savings. The people that need help won't get it but the ?bankers, who got them into that situation because of their greed get away with it.

I hope the public remembers when things even out.

jimd, Norwich, uk

haha you ant seen nothing yet, britain is at the start of a major economic cancer thats spreading like a plague.
Homes will worth half the price they are now, millions will be stuck in negative equity and no chance of clearing their debts in hell. blame labour and the bankers. This was avoidable, start to blame blair et al for your future worries and its going to be somethign the financial world hasnt seen.

gilli, london,

won´t be long till another flood gord, i didn´t vote for floods and i didn´t vote for you

paul, bath, uk

Patity with the Euro would be great for me but I think the BOE should not allow this to happen.It would cause huge inflation in the UK.I hope they keep rates on hold next week.

stephen hulton, eure, france

the rate of lending between the banks is too high on the moneymarkets and nobody wants to lend any money to each other. Therefore the banks have to put up their SVR and change the deals they offer inorder to make the business stay afloat. I dont think it is a case of the banks shafting us but a case of they must do it or else face crisis like eh .......... Northern Rock..................oh dear gloomy times ahead !

jo, anon, northern ireland

A BoE rate cut will depreciate Sterling further, pushing up food and fuel costs even more, thus reducing average disposable incomes. Let us all hope the BOE use some common sense and realise that base rate cuts benefit no-one but the banks which will lower their savings rates, but not their mortgage rates.

Paul, Coventry,

and a year ago my natwest bank manager was suggesting I went for their discounted variable rate deal. Glad I chose the 5 year fixed rate deal instead!

andrew, swindon, uk

This is just greed on the part of banks. On top of that they screwed up and we pay the price.

Mitesh Shah, London,

On balance, I hope the BOE MPC carefully consider the consquences of not reducing UK the UK base rate on 9th April. UK banks seem to be taking the middle ground by increasing SVR's in the face of seemingly intransient MPC policy. Clearly, they cannot lose and, indeed, stand to gain significantly from relatively high UK base rates. Let us all hope the BOE take the initiative and restore stability within the financial sector by reducing rates on 9th April.

Mark, Congleton,

This story just shows that the BoE's base rate cuts are having no effect on mortgage rates, but are fueling inflation, thus squeezing household incomes.

Paul, Coventry,

The BoE need to work with the ECB and keep their eye on inflation. Clearly, in a global market money will move away if the pound depreciates and/or the BoE cut base rate. Any early cut in base rate could precipitate a sterling crisis and require a reversal with large base rate increases to maintain the pounds value. The alternative is serious stagflation and a long-term crisis in sterling.

Stephen Marchant, Broadhempston, UK

0.25 increases. Bet they cut 0.25 with the Base rate cut that is expected next week and expect congratulations for 'passing' on the saving.

Malcolm, London,

This is probably a familiar story for ex-pats, particularly those of us who have long term contracts in Europe. Commonly, we are able to charge in euros so the slide in the pound gives us a substantial real pay rise. Many of us have also fixed our mortgage rates (I was sensible enough to join a 10 year fix at 4.9%) and never intend to move. So the credit crunch and its impact on the pound has been very good news for me.

In fact, I would quite like UK house prices to crash if it caused parity in the euro / pound.

Michael, Nottingham, UK

There will be much pain because of this interest rate rise.. Repossessions and forced sales into a market place that is already jaudiced can only force house prices sharply down over the next year or so. It would appear that the central banks have now lost control of retail money interest rates until at least the banks can repair their balance sheets. Not a good time to be buying your first home.

David Nammory, Liverpool,

Isn't this a little strange. The banks make big mistakes (with our money) and then we get punished ! When the banks make massive profits the big boys get big bonuses and what do we get - nothing

Geoff, Cheshire,