If the

Cantona_2

....will banks and building societies raise their mortgage rates by 0.25% too, or isn't it as straight forward as that?

If they do, I've got a question.... I applied for a Nationwide mortgage last month, but it hasn't started yet (going through the slow and tedious house buying process at the moment!) - will I still get the rate I initially was offered last month?

Miss_Penny_Pincher_2

Hi Cantona - is your mortgage with Nationwide a fixed rate or variable / tracker? We signed up for a fixed rate Nationwide mortgage in October last year but only completed on the property on 31st March. During this time Nationwide increased the interest on their fixed rate but we still received the initial (lower) fixed rate that we signed up for.

Hope that helps

Gorgeous_George

If IRs fall by 0.25% would you be happy to pay the original higher rate?

If your mortgage is fixed, then it's fixed.

If it's a discounted variable rate then it will move but the discounted bit will be static.

Your BS should be able to confirm.



GG

Robert_Sterling

Cantona wrote:

....will banks and building societies raise their mortgage rates by 0.25% too, or isn't it as straight forward as that?

It is not as simple as that.
Sometimes they anticipate a rise in the bank rate.

Cantona_2

Miss_Penny_Pincher wrote:

Hi Cantona - is your mortgage with Nationwide a fixed rate or variable / tracker? We signed up for a fixed rate Nationwide mortgage in October last year but only completed on the property on 31st March. During this time Nationwide increased the interest on their fixed rate but we still received the initial (lower) fixed rate that we signed up for.

Hope that helps

thanks for your reply.

The mortgage with Nationwide ia fixed rate - 4.98% for three years.

Cantona_2

Robert_Sterling wrote:

It is not as simple as that.
Sometimes they anticipate a rise in the bank rate.

so you're saying that the current rates on offer might already have taken into account a future rate rise?

Miss_Penny_Pincher_2

No problem

I think you will be alright - I was really confused too as I wasn't sure if it would be fixed at the initial rate either.

I don't know if current rates have already taken into account future rate rises but I suspect so because seeing as it is a 3 year fixed rate they won't want to put the rate too low in case they lose out if bank of england base rate rises quite a bit over the next 3 years.

Robert_Sterling

Cantona wrote:

so you're saying that the current rates on offer might already have taken into account a future rate rise?

Yes indeed.