Should I wait? Are fixed rates on the slide finally?

LizEstelle

My lender (Accord) has reduced their retention offers on two year fixes twice inside a month, by 0.15% each time.

http://www.accordmortgages.com/documents/ACCM2008_INT_EBTAL.pdf

My current product with them doesn't end till February.

Would I be shooting myself in the foot to accept the latest deal or is it likely there will be at least one more reduction in the time remaining?

Any thoughts appreciated.

LizEstelle

Would be interested in any comments.

northerner79

Liz,

It looks likely that rates are going to stay low for the medium term (12-18 months), beyond that who knows, but no one would predict they would rise as quickly as they fell.

The one fear is that the MPC left it far too late to cut rates, to prevent the same occurance at the other end of the cycle, they may raise rates earlier than expect.

Do what is right for you, if you can afford to take the risk of another drop I would say wait, but 0.15% isn't going to make a huge difference to mortgage payments and may give you peace of mind.

Good luck either way!

LizEstelle

northerner79 wrote: »

Liz,

It looks likely that rates are going to stay low for the medium term (12-18 months), beyond that who knows, but no one would predict they would rise as quickly as they fell.

The one fear is that the MPC left it far too late to cut rates, to prevent the same occurance at the other end of the cycle, they may raise rates earlier than expect.

Do what is right for you, if you can afford to take the risk of another drop I would say wait, but 0.15% isn't going to make a huge difference to mortgage payments and may give you peace of mind.

Good luck either way!

Am not quite sure what you mean by 'another drop'.

In any event, I don't see how I can lose by waiting at least another couple of weeks till the beginning of Dec, just before the MPC's next meeting, say!