Any more room for fixed rate mortgages to fall?

Klinsmann

I have an application in for a Skipton 10 year fixed at 4.75% I think this is historically brilliant and I don't think lenders will drop much further.

If I get their offer I might wait a couple of weeks to sign on the dotted line (if the rate is assured) in case they drop more but at the end of the day I'll be content to get that rate for 10 years. Any views?

hearts

As you say you, wait and see what other offers appear in the next few weeks. What are you on at the moment?
A lot depends on your L To V % and present rate.

I wouldn't be in any rush to take up any deal to be honest. Rates could stay low for a long time. Then again it depends what you are on at present and for how long.

Klinsmann

4.84 variable with Bradford and Bingley, LTV under 60%.

I know 10 year deals are costly relatively but the security bonus is important. Debt consolidation by doing this now will save me £300 a month and enable me to pay back £500 at intervals of the mortgage, which seems a sensible plan.

lethal0r

1 more drop across the board imho.

i was wrong about todays BR drop but im conident on this!

opinions4u

Any room for further falls is limited.

Lenders have been passing on full SVR and tracker cuts, but are not able to pass on rate cuts to savers.

This, to me, suggests that even if LIBOR falls many lenders will simply look to widen margins in the new loans they put on their books.

We have already seen most tracker margins widen, and similarly haven't seen fixed rates fall by as much as LIBOR after recent rate cuts.

You might see small falls, but nothing significant.

Final point, the joys of quantitive easing could be inflationary. If that theory is right, as sure as night follows day interest rates will shoot up in 12 to 18 months time. Holding on in the hope of finding an extra 0.2% saving could turn out to be a mistake.

Then again, when Japan tried QE it didn't seem to work or cause inflation!

uzubairu

4.75% for 10 years is very good.

We took out a 10 year fix (4.79%) with Nationwide in 2006 and haven't looked back.

Certainty of payment was key for us.

Able to budget more accurately which has enabled us to concentrate extra income (payrises, household savings etc) on overpaying the mortgage.


See signature.

Bargain_Rzl

A couple of weeks ago Nationwide had a 5-year fix at 4.68% (£299 fee) for existing customers with <75% LTV which I was intending to apply for, but on the 1st of this month the same product went UP to 4.98%.

I will be interested to see whether this is adjusted again before the end of this month; if I'm going to apply for anything at this point I really need to be doing it before Q1 house price figures are added to the calculator.

russelsprout_2

I had a tip off on the 0.3% increase on Nationwide products and just managed to squeeze my application in on the Friday!

freeasabird

Bargain_Rzl wrote: »

A couple of weeks ago Nationwide had a 5-year fix at 4.68% (£299 fee) for existing customers with <75% LTV which I was intending to apply for, but on the 1st of this month the same product went UP to 4.98%.

I will be interested to see whether this is adjusted again before the end of this month; if I'm going to apply for anything at this point I really need to be doing it before Q1 house price figures are added to the calculator.

I'm in the same boat. I was tempted to take the 4.68% offer but now it's gone up to 4.98% (it was 4.88% before the reduction to 4.68%) I'm not sure what to do. It's still a good rate but I'm just a bit miffed that NW decided to raise it so quickly. I haven't even had time to look at the paperwork and it's gone up already. Dam!