Silly question...what are chances of fixed rates coming down??

chilipepper38

I'm no expert but I'm following the fixed rate market at the moment. Everyone is rushing to secure a fixed rate, myself included. Interest rates might not rise until end of this year beginning of next so is there time for fixed rates to maybe drop again beforehand or is the trend definitely up from now on??

ILW

Very unlikely. But who knows for sure.

foreversummer

They may well do but nobody knows for sure.

I never buy into this 'must fix now rates will never be so low again' stuff. Once the masses have fixed, and they begin to look less attactive owing to the increased rates, there is no reason why they won't fall again. It appears that swap rates have actually fallen again over the past week or so.

I believe fixed rates have been driven higher by a number of factors one of them being all the hype about green shoots. I think they may be wilting at present. Base rates are certainly going nowhere for some time.

It will certainly be interesting to see how things develop.

Foreversummer

opinions4u

The Credit Crunch is still alive and kicking.

While banks are lending to each other for shorter terms (less than a year) nobody is lending to financial institutions for longer than this.

This has forced fixed savings rates up and inevitably knocked on to fixed mortgage rates.

So there's a two edged sword here .... if the wholesale markets ease and inter-bank lending for longer terms resumes, that should increase supply and bring down prices.

The problem is, such an increase in supply could well be interlinked with an increase in demand within the economy. This would then be likely to have the opposite effect and push fixed rates higher!

I think there'll be fluctuations in both directions in the short term. It's not best to make a panic decision to fix yet. Any such decision should be thought through rationally.

Peelerfart

I do not mean this to be disrespectful in any way to anyone, but the current rush to fix is , in my opinion ,a little lemming like.

samnorris2

The decision to fix is all about your personal conditions and preference at any moment in time. At the moment my fixed deal is coming to an end and I need the comfort of knowing what my payments are going to be over the next 3 years.
Rates are lower than they were 2 years ago when I last remortgaged so securing at todays rates is good for me. Most of what I have read on the subject however tends to suggest the rates will go up. See here
http://www.moneyweek.com/personal-finance/its-time-to-fix-your-mortgage-44029.aspx

I'm fixing up for 3 yrs with RBS or Nationwide. Then I budget knowing exactly what I'll have at the end of the month.

Good luck whatever why you all go.