fixed rates falling ????

emmaBZ

hi i read that HSBC has reduced its fixed rates again from tommorrow.... does anyone think the other banks are likely to reduce fixed rates again ??? we got offered 6.65% for 5yr fixed from halifax on friday but we have got till end oct which is when our current fixed rate ends....is it worth waiting a week or 2 to see if they drop again ???

herbiesjp

Depends on what your mortgage amount is and what the property value is, but you can definitely find lower than 6.65%

lisyloo

I personally think that rates could fall.
For example the BOE decision was 6-3 with 3 voting for a cut.
This news could be one of many fators that persuades lenders to drop.

What you have is a dilemma, because if you fix too early you might fix too high.
If you fix too late you risk being on SVR for a few weeks as remortgages can take 3 months.

If you think rates might fall have you considered a lifetime tracker?
One of the big advantages is no fee ever again, plus if you have no penalties you can move to a fix later on.

Another alternative (which is what I've done) is to grab a fix but with low fees e.g. first direct and then switch product later.
I've paid £300 to first direct for a 5.99% fix.
I MAY switch to their tracker or a cheaper fix later on.
I will loose £300 but that's not much really.
In the meantime the valuation and legal work is already done, so switching will be relatively quick.

6.65% is not particularly competitive.
Are you sub-prime? BTL? or have you jsut not shopped around.
If not then I suggest looking at First Direct, HSBC and Woolwich.

depurnell

Interests rates have the scope to fall slightly over the next few weeks although significant reductions are not expected.

The Bank of England will be making their interest rate decision this Thursday and they are expected to keep the base rate @ 5% with the possibility of a 0.25% increase.

Kind regards,

Damian Purnell
Mortgage & Protection Consultant

monkeymaster

lisyloo wrote: »

I personally think that rates could fall.
For example the BOE decision was 6-3 with 3 voting for a cut.
This news could be one of many fators that persuades lenders to drop.

What you have is a dilemma, because if you fix too early you might fix too high.
If you fix too late you risk being on SVR for a few weeks as remortgages can take 3 months.

If you think rates might fall have you considered a lifetime tracker?
One of the big advantages is no fee ever again, plus if you have no penalties you can move to a fix later on.

Another alternative (which is what I've done) is to grab a fix but with low fees e.g. first direct and then switch product later.
I've paid £300 to first direct for a 5.99% fix.
I MAY switch to their tracker or a cheaper fix later on.
I will loose £300 but that's not much really.
In the meantime the valuation and legal work is already done, so switching will be relatively quick.

6.65% is not particularly competitive.
Are you sub-prime? BTL? or have you jsut not shopped around.
If not then I suggest looking at First Direct, HSBC and Woolwich.

At the last BOE meeting, one member voted for a cut and one for a rise, the rest voting for a hold. Since then we have had the energy price increases which it has been said could add 1% to CPI inflation. Rates are more likely to increase than fall.

beecher

monkeymaster wrote: »

At the last BOE meeting, one member voted for a cut and one for a rise, the rest voting for a hold. Since then we have had the energy price increases which it has been said could add 1% to CPI inflation. Rates are more likely to increase than fall.

BoE rates are more likely to increase, but fixed rates are (in my opinion) unlikely to follow suit as swap rates have fallen. I think they might come down a little bit in the months to come, but I doubt if it'd be worth the OP's while to wait much longer to fix. I'm hoping that the Halifax at least cut some of their arrangement fees by the end of the year when my fixed rate comes to an end, but who knows how things are going to play out.

PayDay

lisyloo wrote: »

I personally think that rates could fall.
For example the BOE decision was 6-3 with 3 voting for a cut.
This news could be one of many fators that persuades lenders to drop.

Only 1 member voted for a drop and it was the same person who always votes for a drop.
1 member voted for a rise in the rate and the others all voted to hold.

lisyloo

Only 1 member voted for a drop and it was the same person who always votes for a drop.
1 member voted for a rise in the rate and the others all voted to hold.

Sorry guys.
Yes, I was mistaken and was referring to the SHADOW mpc.

http://business.timesonline.co.uk/tol/business/economics/article4449689.ece