BOE base rate

[Edible Roadkill]

Any speculation as to when and how much this may be changing going forward ?

I’m just having a look ahead, mortgage deal ends March next year, trying to weigh up interest rate hike Vs ERC.

[okgo]

You can with some lenders secure a new rate 6 months out. So you don’t potentially have to worry too much about ERC and in a few weeks can look to do just that.

[Caddyshack]

Edible Roadkill said:

Any speculation as to when and how much this may be changing going forward ?

I’m just having a look ahead, mortgage deal ends March next year, trying to weigh up interest rate hike Vs ERC.

Nobody knows. Mortgage lenders very rarely borrow from BOE. When rates begin to steady you may see fixed rates drop as the swap rates will look more to the future.

Enjoy the fixed rate you are on but pick a remortgage fixed rate in nov and have it for 6 months as an offer, then decide if you want to complete on it or take a deal from the current lender or another remortgage. If the lender you pick drops rates before your completion you can then update to the better deal.

Speak to a good broker and they can look after you.

[Capcom]

Multiple lenders have sent out notification of significant rate rises on Wednesday.

Next BoE meeting next week.

That should tell you what to expect next week........

[Edible Roadkill]

okgo said:

You can with some lenders secure a new rate 6 months out. So you don’t potentially have to worry too much about ERC and in a few weeks can look to do just that.

I imagine that only applies when remaining with the same lender.

[Edible Roadkill]

Capcom said:

Multiple lenders have sent out notification of significant rate rises on Wednesday.

Next BoE meeting next week.

That should tell you what to expect next week........

I seen that, postponed due to Liz’s funeral……

[pork911]

Edible Roadkill said:

I seen that, postponed due to Liz’s funeral……

Shameful.

[RoadToad84]

I've just fixed at 3.6% for 10 years. Annoyingly couldn't do it sooner to take advantage of the 1% rates. No ERC on this one though so if things settle down, I can switch.

Coventry Building Society, for reference

[okgo]

Edible Roadkill said:

I imagine that only applies when remaining with the same lender.

Not at all.

I did it with Halifax moving from NatWest. Given the money involved here - don’t bother guessing and just speak to a broker. Sarnie on here as good as I’ve found.

I secured 1.8% for 5 years back in feb. Completed end of June…

Edited by okgo on Monday 12th September 22:59

[Sarnie]

Edible Roadkill said:

I imagine that only applies when remaining with the same lender.

No, you can do it with numerous lenders, beware though, not all lenders have 6 month offer periods.....

[Caddyshack]

RoadToad84 said:

I've just fixed at 3.6% for 10 years. Annoyingly couldn't do it sooner to take advantage of the 1% rates. No ERC on this one though so if things settle down, I can switch.

Coventry Building Society, for reference

10 yrs eek. I hope that does not work out too high for too long.

[Caddyshack]

Capcom said:

Multiple lenders have sent out notification of significant rate rises on Wednesday.

Next BoE meeting next week.

That should tell you what to expect next week........

I understood that to be a spike in swap rates as opposed to expectations of BOE announcement but I guess they are linked in some ways.

[RoadToad84]

Caddyshack said:

RoadToad84 said:

I've just fixed at 3.6% for 10 years. Annoyingly couldn't do it sooner to take advantage of the 1% rates. No ERC on this one though so if things settle down, I can switch.

Coventry Building Society, for reference

10 yrs eek. I hope that does not work out too high for too long.

Me too. Zero fees and no penalties for swapping early though, so I'm in a fairly good position whichever way the rates go

[anonymous-user]

Looking on a spread betting site the odds are

No Raise 1.00%
0.25% Raise 8.70%
0.5% Raise 60.61%
Raise of over 0.5% 30.30%

My neighbour is a mortgage broker, she is saying she is incredibly busy at the moment as people try and get their mortgage arranged before the announcement on the 22nd.

Just pleased I arranged mine before the last 0.5% rise.

[Sarnie]

Joey Deacon said:

My neighbour is a mortgage broker, she is saying she is incredibly busy at the moment as people try and get their mortgage arranged before the announcement on the 22nd.

Yep, this 100%!

The issue is that by the 22nd it's too late, lenders are raising their rates this week in anticipation.......HSBC rates are increasing at midnight tonight.......as are a number of other lenders and the rest will follow.

[croyde]

Sarnie, hi.

My house has been on a lovely 1% above base rate tracker since the rate was around 5%.

So currently it's on 2.75%.

Offset, interest only, about 3 years until the capital needs repaying.

Am I still onto a good thing?

Cheers.

[Sarnie]

croyde said:

Sarnie, hi.

My house has been on a lovely 1% above base rate tracker since the rate was around 5%.

So currently it's on 2.75%.

Offset, interest only, about 3 years until the capital needs repaying.

Am I still onto a good thing?

Cheers.

Probably yes, as most fixed rates are above that now anyway.......

[croyde]

Sarnie said:

croyde said:

Sarnie, hi.

My house has been on a lovely 1% above base rate tracker since the rate was around 5%.

So currently it's on 2.75%.

Offset, interest only, about 3 years until the capital needs repaying.

Am I still onto a good thing?

Cheers.

Probably yes, as most fixed rates are above that now anyway.......

Thanks Sarnie, cheers.

[Puzzles]

Looking at it now I’m offered 2.8% variable, 3.25% for 2yrs and 3.45% for 5yrs.


I can see the variable going up in the short turn so the 2 yrs is preferable over that but the 5 isn’t much more.

[skinnyman]

The mortgage lenders clearly don't think these high rates will last long, Nationwide currently offering 10yr fixed rates at a lower percentage than 2yrs.

We're fixed @ 2.19%, but that ends Dec 2023, so we could be in for a shock by then