Bank Woes Ensure Interest Rate Will Stay Low

neil40

Im on good tracker rate at the mo(base rate + 0.99%) but am still thinking to take 10 year fixed at under 5% because the BOE could raise rates much higher without much expectation and the good fix deals are already starting to dry up...Neil

inspector_monkfish

neil40 wrote: »

BOE could raise rates much higher without much expectation

how do you know?

foreversummer

neil40 wrote: »

Im on good tracker rate at the mo(base rate + 0.99%) but am still thinking to take 10 year fixed at under 5% because the BOE could raise rates much higher without much expectation and the good fix deals are already starting to dry up...Neil

Drying up? They are rising slightly at the moment but how much can they rise with base rates at 0.5%! I am quite sure that when we turn the corner and banks really do start to become competitive again there will be some very good historically low fixed rates to be had.

Foreversummer

crispy2_2

5 year swaps took a dive today, down from 3.3% to 3.1%, according to FT data.

5 yr swaps are the thing that banks buy in order to offer 5 year fixed rates.

See this graph (sorry, can't do links, I'm a newbie): lh4.ggpht.com/_XvZKO7bUd2I/SgsB_dUrOqI/AAAAAAAAANg/0vf_mdcUETs/ScreenHunter_72%20May.%2013%2018.20.gif

dannykos

hahaha - all this proves is that NOBODY really has any idea when and how this will all be sorted.

Glad I got the A&L 3.99 5yr fee free when I had the chance. Almost regretting not taking the 10yr 4.59 that was kicking around - if things really are going to take that long to turn around, but ah well!

neil40

inspector_monkfish wrote: »

how do you know?

If you can read - i said could !!.I did'nt say will:rolleyes:

Teterow

So I am coming off my 5.73% fixed rate at the end of July...shall I sit on the SVR of 2.49% at least until the end of 2009? I am certain I am in negative equity and would have trouble getting a decent mortgage. Thoughts please?

Bargain_Rzl

It doesn't sound as though you'll have any option BUT to sit on the SVR...

Teterow

Well, that's the situation. There are no ways around it. But I hope by paying what I am paying now and more, I will be in a slightly better position this time next year...so I am hoping the rates will stay low.

inspector_monkfish

neil40 wrote: »

If you can read - i said could !!.I did'nt say will:rolleyes:

oooooohhh - get you !!:D