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  • FIRST POST
    • Wellgood
    • By Wellgood 13th Sep 17, 9:10 PM
    • 71Posts
    • 8Thanks
    Wellgood
    Is my logic wrong
    • #1
    • 13th Sep 17, 9:10 PM
    Is my logic wrong 13th Sep 17 at 9:10 PM
    Nationwide are offering me 2yr fix at 1.64% or a 2yr tracker at the same rate of 1.64%
    Now historically fixed deals were generally higher than variable so in my mind this suggests the bank are trying to "sell" getting the fixed rate. The cynic in me says this is because they expect rates to fall. So are trying to get people to pick fixed over variable......am I way off the markcwith this thinking?
Page 1
    • ricky_v
    • By ricky_v 13th Sep 17, 9:48 PM
    • 257 Posts
    • 130 Thanks
    ricky_v
    • #2
    • 13th Sep 17, 9:48 PM
    • #2
    • 13th Sep 17, 9:48 PM
    I would be suprised if rates fall any further, although I said that when I got my first mortgage at 3.74% fixed for 3 years 6 years ago and again several months ago when I remortgaged at 2.08% fixed for 5 years (now sub 2% for the same deal). Maybe one day the banks here will pay mortgage debtors interest?

    Maybe the banks think that the BoE base rate will remain at 0.25% for the next 2 years, which is why the 2 year tracker is the same as the 2 year fixed? SVR is much higher than fixed I guess to cash in on switching apathy, much like standard energy tariffs or "full price" for broadband.
    • ACG
    • By ACG 13th Sep 17, 9:51 PM
    • 15,768 Posts
    • 8,065 Thanks
    ACG
    • #3
    • 13th Sep 17, 9:51 PM
    • #3
    • 13th Sep 17, 9:51 PM
    I cant see rates dropping. Maybe they are hoping people go for tracker rates hoping rates rise?
    The governor of the bank of England said rates are more likely to rise sooner than expected than they are to drop or remain the same only this week.
    I am a Mortgage Adviser
    You should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
    • amnblog
    • By amnblog 13th Sep 17, 9:55 PM
    • 10,022 Posts
    • 3,902 Thanks
    amnblog
    • #4
    • 13th Sep 17, 9:55 PM
    • #4
    • 13th Sep 17, 9:55 PM
    You are crediting the Banks with a level of wit that I rarely see in evidence.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
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