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Fixed rate mortgages set for imminent increase.
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ad9898_3
Posts: 3,858 Forumite
Ray Boulger of leading UK mortgage broker John Charcol said, “Yesterday we saw another sharp rise in swap rates, following closely on from other recent increases. The scale of the increase was large enough to be the straw that breaks the camel’s back and as a result I expect several lenders to increase the cost of at least some of their fixed rate mortgages over the next few days.
With most borrowers (including around 80% of our clients) currently choosing a fixed rate mortgage, if interest rates continue to rise then the current recovery in the housing market, which is based primarily on much improved affordability as a result of the combination of lower house prices and lower interest rates, may well wobble. The message for borrowers wanting to take a fixed rate is clear; get in now or miss out on the current relatively low rates.
No thanks Ray, I will just wait for prices to come down further, after all you have to earn £3 for every £1 of mortgage to pay it off, the advice should be, have the smallest mortgage you can get away with, which means don't buy in a falling market.
http://www.introducertoday.co.uk/News/Story/?storyid=1592&title=Fixed_rate_Mortgages_set_for_imminent_increase&type=news_features
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Yes this is why we are in a bull trap now, peope think last chance to get low rate.0
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novazombie wrote: »Yes this is why we are in a bull trap now, peope think last chance to get low rate.
Erm, it probably is the last chance to get a low rate if articles like this are to be believed. Fixed rates going up and IR's going up in the future and you expect you get a low rate then?
Ad why are you thanking misinformed moronic tripe like this?This is a system account and does not represent a real person. To contact the Forum Team email forumteam@moneysavingexpert.com0 -
Erm, it probably is the last chance to get a low rate if articles like this are to be believed. Fixed rates going up and IR's going up in the future and you expect you get a low rate then?
Ad why are you thanking misinformed moronic tripe like this?
Sometimes I just get into thanking mode
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Erm, it probably is the last chance to get a low rate if articles like this are to be believed. Fixed rates going up and IR's going up in the future and you expect you get a low rate then?
Ad why are you thanking misinformed moronic tripe like this?
These are not particularly low rates though are they.
I can't understand why some of the more optimistic people out there bang on that we shouldn't miss the boat, get in quick while rates are "low" and fix.
But in the next article, they deny that interest rates will go up anytime soon.
Hows that work then? Why push the "get in now" message and then tell us that interest rates won't go that high and definately not soon?0 -
Graham_Devon wrote: »These are not particularly low rates though are they.
I can't understand why some of the more optimistic people out there bang on that we shouldn't miss the boat, get in quick while rates are "low" and fix.
but on a historical average they are very low so i don't think people should be complaining about mortgage rates too much...
it makes no sense buying now or in 12 months if you have the downside of having to pay a higher mortgage rate if the upside of a lower house price isn't as much. i think that too many people are just too focused on just house prices and not looking at the total cost of the mortgage.0 -
but on a historical average they are very low so i don't think people should be complaining about mortgage rates too much...
it makes no sense buying now or in 12 months if you have the downside of having to pay a higher mortgage rate if the upside of a lower house price isn't as much. i think that too many people are just too focused on just house prices and not looking at the total cost of the mortgage.
Yes, your right, it makes no sense buying a 100k house in a year if the house is still 100k.
The trouble is, I don't think the UK as a whole works or thinks like that, i.e. "if I buy now I could save £2000 (for instance) in interest payments on my mortgage over 25 years".
Especially in todays volitile climate. I think it is a good way of trying to tell people to buy now though.0 -
Surely some of the finance houses are expecting rates to rise. One advert I saw this weekend is giving a fixed rate 2 year savings bond at over 4% interest.0
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Graham_Devon wrote: »Yes, your right, it makes no sense buying a 100k house in a year if the house is still 100k.
The trouble is, I don't think the UK as a whole works or thinks like that, i.e. "if I buy now I could save £2000 (for instance) in interest payments on my mortgage over 25 years".
Especially in todays volitile climate. I think it is a good way of trying to tell people to buy now though.
that's my problem with the reverse rampers - i don't think it's the best time to buy now but i don't think it's a bad time either. there are many opportunities to buy a home.
so when people say DON'T BUY NOW, i think it is too much of a generalised thing to say and isn't exactly correct and good advice.Surely some of the finance houses are expecting rates to rise. One advert I saw this weekend is giving a fixed rate 2 year savings bond at over 4% interest.
if you look at Fixed rate deals all the 5 year deals are increasing while the 2 or 3 year ones are reasonably competitive.
if you planning to buy on a 5 year fixed (now, 12 months or in 3 years) it will be more expensive and the total price you will pay will be more.0 -
I think the issue is, all this talk of buy now while rates are low by the likes of Boulger is just scare tactics, no one can seriously believe we are in for 25 years of 4% mortgage rates, and virtually no FTB'rs will take out 10 year fixed rates never mind anything more.
More likely they will take out a nice 'teaser' 2 year fix, which will almost certainly land them in hot water when it ends, it's just far better to keep saving let the bottom of the market come along, which will coincide with good economic indicators, none of which are remotely here now. IR's will be what they will be, you can't protect yourselves from them over a 25 year period unless you take a 25 year fix, so the best thing to do is get yourself the smallest mortgage you can, which means waiting for property to continue it's fall after the spring bounce figures have come and gone.0 -
Erm, it probably is the last chance to get a low rate if articles like this are to be believed. Fixed rates going up and IR's going up in the future and you expect you get a low rate then?
Ad why are you thanking misinformed moronic tripe like this?
Simple - wait for house prices to fall even further. Which of course they are guaranteed to do.0
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