Will interest rates be cut still further in the UK?

Gorgeous_George

If offered a lifetime BTL mortgage interest-only fixed at 4% or less with no fees, I'd trade in my BofE base rate tracker (currently 2.89%). That may seem to imply that I think rates will average over 4% over the next ten years but I don't. It would simply be a de-risking exercise to protect both my tenant and me.

I don't think that I would change my residential lifetime tracker unless I was offered a 5-year fix at 3% or better.

GG

WTF?_2

free4440273 wrote: »

true, but Japan's inflation has been non-existent.

They exported it to the rest of the World via the Yen carry trade.

puddy

ad9898 wrote: »

To be honest thats quite a good deal, everyones rushing for trackers at the minute, that won't last long, they will all be squealing like pigs when rates go back up, and they will, its just a matter of time.

i think you're right, although i have to admit to being abit jealous of people on trackers at the moment!!

puddy

boyse7en wrote: »

To be honest, I haven't got a clue what is going to happen to interest rates, so I'm going to try and get a 5 or 10 year fixed rate Feb/March next year. Ideally at under 4%, but I'll take under 5% as long as the fees aren't extortionate.

I took a 5 year fix out back in 2001 at 5.3% and watched rates drop to well below that, but I prefer the security of knowing my outgoings. I like to be able to sleep at night.

thats exactly my philosphy actually, probably not very money saving because im sure there were times over the past 10 years when i was paying more than i could have been but at least i knew where i was

puddy

Gorgeous_George wrote: »

If offered a lifetime BTL mortgage interest-only fixed at 4% or less with no fees, I'd trade in my BofE base rate tracker (currently 2.89%). That may seem to imply that I think rates will average over 4% over the next ten years but I don't. It would simply be a de-risking exercise to protect both my tenant and me.

I don't think that I would change my residential lifetime tracker unless I was offered a 5-year fix at 3% or better.

GG

you have a lifetime tracker?? how and where did you get that?

stevetodd

jenner wrote: »

you have a lifetime tracker?? how and where did you get that?

Some trackers (not mine alas) are actually below the base rate! God knows how the lender ever thought they were going to make money on such a product?

Gorgeous_George

jenner wrote: »

you have a lifetime tracker?? how and where did you get that?

Before this crisis kicked off, BTL with NatWest at +0.89% and residential with Brittania at +0.74%. Both lifetime deals but the Britannia also has an offset account. Neither have collars.

First Direct still offer a lifetime tracker.

That's life of the mortgage, not me.

GG

free4440273

Originally Posted by free4440273
true, but Japan's inflation has been non-existent.

!!!!!!? wrote: »

They exported it to the rest of the World via the Yen carry trade.

agreed, but much like everything else now, it's unwinding (big time .

Really2

Gorgeous_George wrote: »

Before this crisis kicked off, BTL with NatWest at +0.89% and residential with Brittania at +0.74%. Both lifetime deals but the Britannia also has an offset account. Neither have collars.

First Direct still offer a lifetime tracker.

That's life of the mortgage, not me.

GG

They did a .049 over BOE in October.:o

Gorgeous_George

I think Britannia had a better rate than +0.74% but not with the offset account which was important to me. With rates so low, the offset ain't as valuable.

GG