Are ECB rate cuts of any use to investors?

[murphaph]

Seeing as you can offset interest on investment properties, do rate cuts mean anything by way of more money in your pocket? I'm guessing no, but would be pleased to be corrected.

 

[doberden]

you offset interest and pay tax on your profit. If interest rates are lower you have more taxable income but you still fair better e.g. Interest rates drop and your mortgage is 100 quid less, you pay an additional 41 euro in tax (assuming you're on the top rate of tax) so although you pay more tax you benefit by 59 euro...

 

[murphaph]

Of course, thanks for that!

 

[PADDYBOY99]

Just in relation to the above. Has anyone noticed that the ECB cuts are not being passed onto investment mortgages or is it just my bank?

 

[dovest]

ICS Building Society only passed on less than half of the latest ECB rate cut (0.75%) to investors - They cut my rate by 0.3% and they kept the remaining 0.45% for themselves. Cheapskates.