Fixed Rates Evolution For Next 12 months : Buy or Wait?

siliconbits

Even though the BoE Rates are at their all time low, banks are gradually pushing rates up or have pulled their best fixed rates out. Banks are also trying to get as many people on their SVR and trackers it seems.

My question as a potential FTB is whether banks will continue pulling away their best deals, pushing rates up or will the rates eventually come down?

Cissi

My guess is that the rates have got as low as they're going to get - the only way now is up.

siliconbits

Will fixed rates (by Banks and BS) also go up accordingly then as I far as I can see, this is not a normal recession.

Also my guess is that the BoE will leave the interest rates down for at least 24 months in order not to kill any green shoots

brit1234

siliconbits wrote: »

Will fixed rates (by Banks and BS) also go up accordingly then as I far as I can see, this is not a normal recession.

Also my guess is that the BoE will leave the interest rates down for at least 24 months in order not to kill any green shoots

The green shoots are already dead, unemployment up and GDP massively down.

Mortgage rates are going up so as a first time buyer you need as biggest deposit as you can get to get a better rate.

Also prices are set to fall far further. These tempoary small rises are only because of such low transactions combined with cash buyers ( very limited number) and ftb doing these stupid government shared ownership and shared equity schemes on overvalued properties. They are going to sweat as rates rises or they have to pay the 10-35% back in the next 7-10 years.

bdl1brick

I may be completely wrong but I think the banks are trying to scare people off cheap trackers and cheap SVR's onto more expensive fixed rates by pulling deals and putting up deal rates. They may also have too many people applying at the mo so are pulling deals as they always do when they are over subscribed.

I'm sticking with my very cheap trackers for now!

siliconbits

bdl1brick wrote: »

I may be completely wrong but I think the banks are trying to scare people off cheap trackers and cheap SVR's onto more expensive fixed rates by pulling deals and putting up deal rates. They may also have too many people applying at the mo so are pulling deals as they always do when they are over subscribed.

I'm sticking with my very cheap trackers for now!

I actually think they are doing exactly the opposite. Scaring people off their fixed rates and pushing them on more expensive (long term) SVRs and Trackers. A 10 year 5.89 percent will remain the same even if rates rise to 10 percent!

pinkshoes

Interest rates may be low, but it's only of significance to a FTB if you have a 25% deposit, as that's the only way to get a great interest rate on your mortgage!

I can't see the BoE raising rates massively in the next 24 months, as this is probably going to be a long recession.