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Mortgage Rates next Year
RDB
Posts: 872 Forumite
What will interest rates be like next Summer?
I hear 2 different views.
So will all the mortgages that come to an end next year be more or less what they are now.
Some say looking at rates as low as under 5% but many are saying they will be unaffordable.
Whats every one on here think?
I hear 2 different views.
So will all the mortgages that come to an end next year be more or less what they are now.
Some say looking at rates as low as under 5% but many are saying they will be unaffordable.
Whats every one on here think?
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Comments
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I cant see any one actually getting a long term fixed rate mortgage under 5%.
There is usually a catch in there somewhere that means the bank always wins in the end.
The trouble the banks are all in now, they need to be charging asmuch as possible.
Whats the best rate now? 6%0 -
Theyll definately be coming down the libor rate the banks are lending to each other as come down closer to the boe rate, infact its the closest it as been since March and they reckon it will become even closer.
I reckon the boe rate will keep on falling down to about 3.5% and hopefully the libor rate will follow, as the banks are not taking risks now and lending mortgages to high risk customers, or 100% mortgages, ts just a matter of time before all the banks rate fall.
Saying that to get the best mortgage rates, i think you will either need a large deposit, or a lot of equity in your home as theres no way the banks will give good deal to high risk customers again
confusedI am not a Mortgage AdviserYou should note that this site doesn't check my status as not being a Mortgage Adviser, so you need to take my word for it. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
What do you think is the actual rate you could get next year?
Less than 5%?0 -
I reckon by March next year a lot of banks will be offering deals less than 5%, they reckon the BOE rate is going to drop down to 4% and some think it may drop down to 3% at the begining of the year. With the Libor rate getting closer to the BOE rate, it will only be a matter of time.
Like i said earlier though i dont think the banks will be throwing these deals at everyone, but i think anyone who is a safe customer for the bank should be okay.
heres a link with the story about the libor rate getting closer to the BOE rate, everyone keeps on saying the banks are not passing the rate on because the libor rates to high, but soon if it keeps on falling there wont be any excuses.
http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article4992350.ece
confusedI am not a Mortgage AdviserYou should note that this site doesn't check my status as not being a Mortgage Adviser, so you need to take my word for it. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
Thanks for that confused31
"Falls in Libor, the London Interbank Offering Rate, are taken as an encouraging sign: the lower the Libor rates, the more willing banks are to lend to each other."
But I think your right, even if there are deals out there for less than 5% it will be very hard to get one.
Only those who have large equity will get a look in.0 -
I dont think that we should be worrying about mortgage rates, i think we will have bigger issues next year the way things are going,,0
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I dont think that we should be worrying about mortgage rates, i think we will have bigger issues next year the way things are going,,
I think you will its quite a big issue to a lot of people as their current deals are running out, so it could save people a lot of money in the future if they dont tie themselves into a fixed rate at 6% for 5 years, when the rates could be making big drops next year.
I know for me its probably the biggest issue at the moment for myself, even though i havent got to remortgage for another 2 years, but i am thinking of moving.
And the only way i will be moving is if houses eventually do come down and stabablise and interest rates drop, then the first time buyers will come back and houses wil begin to move again.
confusedI am not a Mortgage AdviserYou should note that this site doesn't check my status as not being a Mortgage Adviser, so you need to take my word for it. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
I dont think that we should be worrying about mortgage rates, i think we will have bigger issues next year the way things are going,,
Lower real interest rates (libor) may well be the catalyst for solving the 'bigger issues' next year.'Just think for a moment what a prospect that is. A single market without barriers visible or invisible giving you direct and unhindered access to the purchasing power of over 300 million of the worlds wealthiest and most prosperous people' Margaret Thatcher0 -
I am very pleased that we have a tracker mortgage, rather than a fixed rate.
On the other hand, savings rates are obviously starting to fall, so we have set up several fixed rate accounts recently. The longer the fix the better IMHO.In case you hadn't already worked it out - the entire global financial system is predicated on the assumption that you're an idiot:cool:0 -
I am very pleased that we have a tracker mortgage, rather than a fixed rate.
On the other hand, savings rates are obviously starting to fall, so we have set up several fixed rate accounts recently. The longer the fix the better IMHO.
your lucky to have savings mate, not a lot of people have got savings.
confusedI am not a Mortgage AdviserYou should note that this site doesn't check my status as not being a Mortgage Adviser, so you need to take my word for it. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0
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