UK Fixed Rate Mortgages

ChuiMartinez

Hi,

I will be looking to refinance my mortgage come April 2009 and am obviously as nervous as other when it comes to the rate i will be refixing against. The current estimates are that interest rates are set to fall in the future to deal with the situation at hand, starting with what is increasingly looking like a 0.5% cut on Thursday this week.

Does anyone have any knowledge on whether the banks are likely to refelct such rate cuts in there fixed rate mortgage deals. Or are they likely to simply increase the spread over the base rate from current levels.

Thanks

minimike2

Fixed rate mortgage pricing is not effected by the BoE Base rate. Its priced according the the SWAP - which has been on the up recently. It may decrease with the new BoE liquidity scheme that is being launched though.

Basically....who knows.