BofE interest rate cut by 0.5% to all time low of 0.5%

paulcollins10

Thread title says it all!

JayZed

What does this mean for mortgage rates, though? I'm about to drop onto the Nationwide BMR, which will now be a very attractive 2.5%. All well and good, but at some point I'll want to get onto a new fixed rate deal.

Now that the base rate has gone (more or less) as low as it can go, with the next couple of months be a good time to get a fixed deal before they start going up again? After all, these fixed deals price in expectations of future base rate changes, and there's really only one way that the base rate can go from here. Would be interested in people's views on this.

flyingbanana_2

JayZed wrote: »

What does this mean for mortgage rates, though? I'm about to drop onto the Nationwide BMR, which will now be a very attractive 2.5%. All well and good, but at some point I'll want to get onto a new fixed rate deal.

Now that the base rate has gone (more or less) as low as it can go, with the next couple of months be a good time to get a fixed deal before they start going up again? After all, these fixed deals price in expectations of future base rate changes, and there's really only one way that the base rate can go from here. Would be interested in people's views on this.

I am in exactly the same position from you and would be keen to hear people's view too!

shinypenny

OMG! I have a Tracker with Woolwich and can't believe the interest on my mortgage could be 1.24%!! (BBBR + 0.74%).

I locked my savings in at 6% last year so feeling OK.

paulcollins10

JayZed wrote: »

What does this mean for mortgage rates, though? I'm about to drop onto the Nationwide BMR, which will now be a very attractive 2.5%. All well and good, but at some point I'll want to get onto a new fixed rate deal.

Now that the base rate has gone (more or less) as low as it can go, with the next couple of months be a good time to get a fixed deal before they start going up again? After all, these fixed deals price in expectations of future base rate changes, and there's really only one way that the base rate can go from here. Would be interested in people's views on this.

I certainly have no crystal ball but i would predict another 0.5% decrease to take the rate to 0% where it will remain consistent for a few months before rising steadily around 3rd quarter of this year

maninthestreet

The 0% base rate singularity is very close.

koexelek

shinypenny wrote: »

I locked my savings in at 6% last year so feeling OK.

What a wise move that was :beer:

shinypenny

JayZed wrote: »

What does this mean for mortgage rates, though? I'm about to drop onto the Nationwide BMR, which will now be a very attractive 2.5%. All well and good, but at some point I'll want to get onto a new fixed rate deal.

Now that the base rate has gone (more or less) as low as it can go, with the next couple of months be a good time to get a fixed deal before they start going up again? After all, these fixed deals price in expectations of future base rate changes, and there's really only one way that the base rate can go from here. Would be interested in people's views on this.

A number of Tracker products have a feature where you can 'lock' or 'fix' into the interest rate at a particular time. Could be worth investigating if you think, or see, rates starting to rise again.

Peelerfart

Good news for some, me included, but should we expect a few fixed rate people on here soon , pretty fed up ?

hamstercheeks_2

I'm on a nationwide tracker with a collar so unlucky this time:mad:

maveli

Next Month's Headline will something like this.

BoE announce redundancies as rate set to zero and the MPC left with no more orders.