Mortgage rate predictions.......
Discussion
IMO, they're not going to change much as the base rate is lower than most lenders fancy tracking close to.
My lender issued a statement saying that they have more savers than borrowers so are going to look after the majority, for example. So that's not me
and my 3.0% collar stays in place despite my mortgage only being 0.6% over base.
My lender issued a statement saying that they have more savers than borrowers so are going to look after the majority, for example. So that's not me
and my 3.0% collar stays in place despite my mortgage only being 0.6% over base.Furyous said:
My deal is up for renewal this spring, so Im looking round at whats available.
My current deal is with the Halifax, so looking at them now, I can fix for 5 years at 4.99.
Whats the feeling on rates generally ?
What rate would your mortgage be at if it was reverting to the svr next month?My current deal is with the Halifax, so looking at them now, I can fix for 5 years at 4.99.
Whats the feeling on rates generally ?
New tracker deals seem to be considerably above the base rate, saw one yesterday at +2.5%(though there are probably better), add that to the base rate and the deals are getting close to your fixed if rates rise a little.
Short term though I thimk they will stay low, if not drop further- but I think the base rate collar on most of the mortgages will be used, if it hasn't already... 12,18,24 months down the road who knows- a few weeks ago people on here were paying to get out of their fixed rates and onto trackers, rates they fixed not so long ago believing rates were on the up
Of course this is just my opinion and gordons warming up with the quantitive easing, so who knows... I'm off to start the what wheelbarrow thread
Brite spark said:
What rate would your mortgage be at if it was reverting to the svr next month?
From next month Halifax SVR is 4.5% Brite spark said:
New tracker deals seem to be considerably above the base rate, saw one yesterday at +2.5%(though there are probably better), add that to the base rate and the deals are getting close to your fixed if rates rise a little.
He's not wrong. Brite spark said:
Short term though I thimk they will stay low, if not drop further- but I think the base rate collar on most of the mortgages will be used, if it hasn't already... 12,18,24 months down the road who knows- a few weeks ago people on here were paying to get out of their fixed rates and onto trackers, rates they fixed not so long ago believing rates were on the up
Nationwide has invoked its Floor (at 2% not 2.75%, they moved it) Halifax has said it will pass on cuts, and Lloyds has said they will pass on cuts to 0% if necessary. People still are looking to eiter pay to change rate, or are waitng on SVR to see if decent fixes come along. The hope is that some lower longer term rates will appear. At which point I'd say jump on them, I have a feeling they won't be about long. Furyous said:
Scotal, it looks like, currently, I can get a better fixed deal for 5 years than I can 10 ?
Doesnt make sense to me.
Im thinking that maybe its worth paying a small repayment penalty to get onto a cheap long term fix ?
You can get a cheaper 2 year than either, but the market is all over the place and as yet there is no consensus form the lenders. Its all down to where the lenders are pricing deals, who has the appetite to lend and who doesn't. When in the spring is your current deal up? If it's not too far away there is no point at all in you paying an ERC, it should be possible to tie a new deal up to complete when your old deal expires (assuming there is no overhang on your early repayment penalties) Equally be prepared to go onto the SVR for a short while as the market sorts itself out. Personally I'd be keeping an eye is what is available, and not making any hasty decisions right now. Caveat:- Unless there is a good reason for you to tie up the new deal now.Doesnt make sense to me.
Im thinking that maybe its worth paying a small repayment penalty to get onto a cheap long term fix ?
Piginapoke said:
2 year tracker. Make sure it has no collar built in to it, so you get the full benefit of the low BR and any future cuts
Id like to see a longer term tbh.Really fancy a 10 year fix if the rate looks right.
ETA - Not in a real hurry, just dont want to get caught out, and enjoy being on a fixed deal.
Edited by Furyous on Sunday 11th January 21:32
Piginapoke said:
2 year tracker. Make sure it has no collar built in to it, so you get the full benefit of the low BR and any future cuts
The problem with trackers is that as the margins currently stink, there is a hell of a lot more downside on a tracker than there is upside.i.e if you were to take a Base +2% tracker today, then the best you can hope for is a 2% interest rate, what will you do if the BoE hikes rates at the same speed with which they cut them (it's unlikely but possible) and rates retrun to 5% base?
Think long term and get a very long fixed rate, as low as possible, say 5% for 10 years.
If the rate they are charging stays low for 10 years, say 3% then you have paid over the odds.
If the depression turns rally nasty and we get rampant inflation with high interest rates, a lot of people will probably lose their homes to repossession.
But you will have protected yourself and are unlikely to among them.
If the rate they are charging stays low for 10 years, say 3% then you have paid over the odds.
If the depression turns rally nasty and we get rampant inflation with high interest rates, a lot of people will probably lose their homes to repossession.
But you will have protected yourself and are unlikely to among them.
Furyous said:
Fester, thats pretty much my thinking tbh.
As long as I can get some overpayment flexibility built in as well, would be the way forward.
I see the robbing b
ds charge around $1500 for a "product" fee on a 10 year deal though.....
Fees like that will, I fear, become more and more usual (They aren't exactly unusual at the moment) My favourite ia 1 year BTL fixed at 3.49% with a 3% arrangement fee on it. As long as I can get some overpayment flexibility built in as well, would be the way forward.
I see the robbing b
ds charge around $1500 for a "product" fee on a 10 year deal though.....YHM btw.
scotal said:
Furyous said:
Fester, thats pretty much my thinking tbh.
As long as I can get some overpayment flexibility built in as well, would be the way forward.
I see the robbing bds charge around $1500 for a "product" fee on a 10 year deal though.....
Fees like that will, I fear, become more and more usual (They aren't exactly unusual at the moment) My favourite ia 1 year BTL fixed at 3.49% with a 3% arrangement fee on it. As long as I can get some overpayment flexibility built in as well, would be the way forward.
I see the robbing b
ds charge around $1500 for a "product" fee on a 10 year deal though.....YHM btw.
Let me check out a few details over the next day or two, and I will get back you.
Cheers
Gassing Station | The Pie & Piston Archive | Top of Page | What's New | My Stuff