BOE Interest Rate Vs Mortgage Rates

Aletank

After reading in the news that the Bank of England should cut interest rates drastically to maybe 1% etc, I was wondering what effect this would have on mortgage rates if it did happen. I presumed that mortgage rates would follow suit being about 2% higher.
Then today I heard that the interest rate in the USA has just been cut to 1% so I thought I'd do a search for USA mortgage rates. I was quite surprised to find that the mortgage rates in the USA are about 5/6% etc Lots of 10,20,30 year fixed deals on offer!!
It's left me thinkin that any mortgage rate below 5% that may be on offer in future is very good and if available for a long term fixed rate it would be worth while!
When I took out my mortgage in 2003 I had a 2 year fix at 4.4% then had to get a 5 year fixed at 5.2% in 2005. When I'm due for renewel again in May 2010, if any fixed rates below 5% are available I think I'll be grabbin it for as long as possible!
What does everyone think about this ? Am i thinkin right ?

sympatex

I'd quite like a crystal ball too. We're planning on buying next year unless the housing market continues to be insane and if it does we might rent.

historically mortgage rates are still low and if you find a sub 5% rate i would personally fix for as long as i could. as you probably won't lose out that much on paying over the odds, what might happen if you fix in short term is your house is worth less than your mortgage (only likely for people who bought 2006 onwards at this point in time but could feasibly go back prior to 2003.