Nailing down the Mortgage Time
Discussion
Evening All,
Decided that whilst interest rates may drop in the short term this is unlikely to be passed on to us mere mortals and then who knows...
So looking at a 5 year fixed and can't find much better than 2.09% fixed and a £1k fee. This has additional convenience as it's with my current lender and could do it online!
I know there are experts on this section so was wondering if this is the best out there?
Would like to get this sorted this week.
PS £450k house with a LTV of 35%.
Decided that whilst interest rates may drop in the short term this is unlikely to be passed on to us mere mortals and then who knows...
So looking at a 5 year fixed and can't find much better than 2.09% fixed and a £1k fee. This has additional convenience as it's with my current lender and could do it online!
I know there are experts on this section so was wondering if this is the best out there?
Would like to get this sorted this week.
PS £450k house with a LTV of 35%.
BatForcePC said:
Evening All,
Decided that whilst interest rates may drop in the short term this is unlikely to be passed on to us mere mortals and then who knows...
So looking at a 5 year fixed and can't find much better than 2.09% fixed and a £1k fee. This has additional convenience as it's with my current lender and could do it online!
I know there are experts on this section so was wondering if this is the best out there?
Would like to get this sorted this week.
PS £450k house with a LTV of 35%.
Go with that I reckon! Decided that whilst interest rates may drop in the short term this is unlikely to be passed on to us mere mortals and then who knows...
So looking at a 5 year fixed and can't find much better than 2.09% fixed and a £1k fee. This has additional convenience as it's with my current lender and could do it online!
I know there are experts on this section so was wondering if this is the best out there?
Would like to get this sorted this week.
PS £450k house with a LTV of 35%.
BatForcePC said:
Evening All,
Decided that whilst interest rates may drop in the short term this is unlikely to be passed on to us mere mortals and then who knows...
So looking at a 5 year fixed and can't find much better than 2.09% fixed and a £1k fee. This has additional convenience as it's with my current lender and could do it online!
I know there are experts on this section so was wondering if this is the best out there?
Would like to get this sorted this week.
PS £450k house with a LTV of 35%.
How on earth are interest rates going to drop any further, if anything they are going to rise in a desperate attempt to control inflation following the massive weakening of the Pound.Decided that whilst interest rates may drop in the short term this is unlikely to be passed on to us mere mortals and then who knows...
So looking at a 5 year fixed and can't find much better than 2.09% fixed and a £1k fee. This has additional convenience as it's with my current lender and could do it online!
I know there are experts on this section so was wondering if this is the best out there?
Would like to get this sorted this week.
PS £450k house with a LTV of 35%.
RedWhiteMonkey said:
How on earth are interest rates going to drop any further, if anything they are going to rise in a desperate attempt to control inflation following the massive weakening of the Pound.
Some rumblings that one of the tactics from BoE is to drop interest rates to enhance liquidity, at least in the short term. This is unlikely to be passed to the general public though and yes in the medium term I think rates may have to rise to combat inflation as you say.I may of course be completely wrong but right now all I know is what my mortgage repayment will be for the next 5 years!
BatForcePC said:
RedWhiteMonkey said:
How on earth are interest rates going to drop any further, if anything they are going to rise in a desperate attempt to control inflation following the massive weakening of the Pound.
Some rumblings that one of the tactics from BoE is to drop interest rates to enhance liquidity, at least in the short term. This is unlikely to be passed to the general public though and yes in the medium term I think rates may have to rise to combat inflation as you say.I may of course be completely wrong but right now all I know is what my mortgage repayment will be for the next 5 years!
BatForcePC said:
Some rumblings that one of the tactics from BoE is to drop interest rates to enhance liquidity, at least in the short term. This is unlikely to be passed to the general public though and yes in the medium term I think rates may have to rise to combat inflation as you say.
I may of course be completely wrong but right now all I know is what my mortgage repayment will be for the next 5 years!
Drop interest rates and enhance liquidity to stimulate the economy... like they've been attempting for the last 8 years and failing miserably. I may of course be completely wrong but right now all I know is what my mortgage repayment will be for the next 5 years!
As others have said, we're now far more likely to see increasing I.r's in order to fight inflation and defend a weakening pound.
mike74 said:
BatForcePC said:
Some rumblings that one of the tactics from BoE is to drop interest rates to enhance liquidity, at least in the short term. This is unlikely to be passed to the general public though and yes in the medium term I think rates may have to rise to combat inflation as you say.
I may of course be completely wrong but right now all I know is what my mortgage repayment will be for the next 5 years!
Drop interest rates and enhance liquidity to stimulate the economy... like they've been attempting for the last 8 years and failing miserably. I may of course be completely wrong but right now all I know is what my mortgage repayment will be for the next 5 years!
As others have said, we're now far more likely to see increasing I.r's in order to fight inflation and defend a weakening pound.
More likely than increasing base rates will be lender spread over the base rate, meaning mortgage rates will go up even if base rates stay flat (or even go down). But all this is fairly speculative as it's highly dependent how the next 6-18 months play out.
Either way I'd be locking in that 5yr 2.09% for sure to protect against instability.
Either way I'd be locking in that 5yr 2.09% for sure to protect against instability.
There is some talk of the base rate going to 0%, as to whether this will really happen or not is anyones guess.
As for this being passed onto us mere mortals, well I for one am on a tracker that is 1.5% above base so if the rate does drop to 0% I'll be getting a 0.5% cut in my mortgage payments. Admittedly it's a bit of a gamble being on a tracker especially in these uncertain times, just have to see what happens but need to be prepared to jump ship to a fixed.
As for this being passed onto us mere mortals, well I for one am on a tracker that is 1.5% above base so if the rate does drop to 0% I'll be getting a 0.5% cut in my mortgage payments. Admittedly it's a bit of a gamble being on a tracker especially in these uncertain times, just have to see what happens but need to be prepared to jump ship to a fixed.
sealtt said:
More likely than increasing base rates will be lender spread over the base rate, meaning mortgage rates will go up even if base rates stay flat (or even go down). But all this is fairly speculative as it's highly dependent how the next 6-18 months play out.
So people on a base rate tracker may see rates go up even if the base rates go down?Jockman said:
So people on a base rate tracker may see rates go up even if the base rates go down?
For people already on a base rate tracker (with the spread over base rate already locked in), then base rates going down would mean their mortgage would go down too. My comment was just about people taking out new mortgages in the future. Purely speculative anyway, but a risk I'd protect against if I could.The overnight swap rates are interesting now and firming, post vote. If we had a 0.25% drop soon, I wouldn't be surprised.
http://www.bankofengland.co.uk/statistics/pages/yi...
http://www.bankofengland.co.uk/statistics/pages/yi...
Ginge R said:
The overnight swap rates are interesting now and firming, post vote. If we had a 0.25% drop soon, I wouldn't be surprised.
http://www.bankofengland.co.uk/statistics/pages/yi...
Carney signals a drop in interest rates likely. Greece notwithstanding, the markets will probably go Risk on (IMHO) fo a bit.http://www.bankofengland.co.uk/statistics/pages/yi...
http://www.telegraph.co.uk/business/2016/06/30/fts...
Lipper now predicting similar in the US.
http://lipperalpha.financial.thomsonreuters.com/20...
Ginge R said:
Carney signals a drop in interest rates likely.
Interest rates have fallen from 6% in the 1990s to ZERO point five percent since 2008. Anyone, including Mark Carney, who thinks a further reduction from ZERO to ZERO will make any difference whatsoever is IMO living in a dream world.Gassing Station | Finance | Top of Page | What's New | My Stuff