Mortgage Rates going UP, UP, UP

ad44downey

Just how high are they going to be when the BoE interest rate goes over 5%? Watch you don't get caught in the bulltrap please

http://www.telegraph.co.uk/finance/personalfinance/borrowing/mortgages/5306506/Mortgage-rates-on-the-rise.html

Average fixed-rate mortgage deals have increased over the last two months, even though the Bank of England kept interest rates at an historic low of 0.5 per cent this week and pumped a further £50 billion into the system.
The research came as three large mortgage companies, Britannia and Yorkshire Building Society, announced that they were putting up their rates for new customers from next week.

Royal Bank of Scotland, which has received more than £50 billion of taxpayers’ money, is putting up its two year deal, for those with a 20 per cent deposit, from 5.09 per cent to 5.79 per cent.
According to figures from the personal finance publisher, MoneyFacts, the average two-year fixed rate mortgage, still the most popular deal, was 4.87 per cent at the start of March, just before the Bank cut bank rate from 1 per cent to 0.5 per cent.
After that cut rates started to tick down and fell to 4.60 per cent in April, but since then have started to creep back up and yesterday were ate 4.62 per cent. They are likely to climb higher once the latest increases are taken into account.

The hardest hit are first time buyers. Those who have just a 10 per cent deposit – the case for most people trying to get on the housing ladder – have seen rates drop from 6.38 per cent to 5.97 per cent before climbing back up to 6.13 per cent.
The concern is that fragile signs of a potential recovery in the housing market could be squashed if first time buyers are shut out altogether from buying a property.

Dithering_Dad

The banks must've been reading my posts on securing a fixed rate mortgage and decided to put a stop to it.

p.s. Nice to see you contributing a little more than your usual snide one line comments, Mr. Downey (I really mean that).

penguine

Dithering_Dad wrote: »

The banks must've been reading my posts on securing a fixed rate mortgage and decided to put a stop to it.

So I guess this isn't a good time to buy a house after all?

Dithering_Dad

penguine wrote: »

So I guess this isn't a good time to buy a house after all?

It's always a good time to buy a house, if personal circumstances dictate so.

ess0two

Seems to be a vicious circle....people dont wanna buy as prices are dropping,now they are put off buying with potential IR rises.

Sooner or later you gotta bite the bullet,or not bother at all,there is always gonna be a fly in the ointment.

1984ReturnsForReal_2

Hasnt the interbank lending rate come down also?

Just shows you how much everyone in the UK gets ripped off.

inspector_monkfish

1984ReturnsForReal wrote: »

Hasnt the interbank lending rate come down also?

Just shows you how much everyone in the UK gets ripped off.

yes, LIBORs continue to trickle a point or two lower each day
currently at all time lows

1mth 0.78313 (1mth ago 0.94625)
3mth 1.41188 (1mth ago 1.56375)
6mth 1.6150 (1mth ago 1.7925)
12mth 1.88875 (1mth ago 1.99875)

so without any kind of formal rate cut from BOE, LIBORs have still managed to drift 10 to 15pts lower in the past month

penguine

Dithering_Dad wrote: »

It's always a good time to buy a house, if personal circumstances dictate so.

It's not always a good time to take out a huge mortgage, though.

ad9898_3

ess0two wrote: »

Seems to be a vicious circle....people dont wanna buy as prices are dropping,now they are put off buying with potential IR rises.

Sooner or later you gotta bite the bullet,or not bother at all,there is always gonna be a fly in the ointment.

Not really, the economic indicators suck a big fat one at the minute, so not only do lots of people feel insecure in their job, prices are continuing to fall. The simple facts are it's not a good time for a FTB'r to buy a house, prices are falling and you can rent a better property for less money than you can buy, more to the point if you lose your job or your circumstances change you can give a months notice and walk, then find a smaller house/flat that suits your budget and ride out the storm.

All the while prices are falling so even if you are not actually saving anything as regards to putting money in the bank, you are still saving with price falls. It's a no-brainer really as your not really sacrificing anything by waiting it out to hit bottom in 18 months or so.

Dithering_Dad

penguine wrote: »

It's not always a good time to take out a huge mortgage, though.

Is there ever a good time to take out a huge mortgage?

(though I guess this depends what you class as a 'huge mortgage'? If the mortgage is based on a percentage of earnings then someone who is a mega earner could get a conservative 2xsalary mortgage that would look immense to me).

lostinrates

ad9898 wrote: »

. It's a no-brainer really as your not really sacrificing anything by waiting it out to hit bottom in 18 months or so.

You know, I feel I'm losing out. Maybe its because its a nice day and I've enjoyed doing some gardening in my parent's garden, and thinking about things I'd like to be growing,watering the baby trees I've grown and are in pots waiting for their new home and cursing the silly little path and fence that's habouring the bindweed that if it were mine I'd pull out . Or because I've stubbed my toe on the bed again in our bedroom stuffed over full of furniture. Or because I'm just coming to the limit of the amount of time I can stand this wretched temporary feeling for. Maybe its combined pressure of fear of any more cuts in DH's industry, and future employment, and not really nowing what the future will brfing etc etc. I'm not in the best mood today: which is a shame as its such a beautiful day.