mortgage rates

FTBLondon_2

Sorry a bit confused how the rates work for example the base rate is 0.5%, however people with only about 10 - 15 deposit still have a fixed rate of about 5.4 to 6%, and you can get a variable for about 4.5 to 5%, why is that if the bass rate is so low, is it because the banks are not just passing this on similar to credit cards??? Also if the interest rates do go up today which i think is unlikely, how would these effect fixed and variable mortgages, would people seeking new fixed rates mortgages go up and also people on variables would these also go up??

:money:

herbiesjp

People on an existing fixed rate would stay the same payment.

People on variable rates, would see the payments increase. The amount of increase would depend on what kind of variable rate the person is on, and what increase the lender therefore applies.

tez_c

My fixed rate finished just as the BoE base rate fell right down so my variable is only 1% above base rate but I'm jsut wondering if I will get a fixed rate this good in the next year or so as I doubt BoE are going to increase its rates that much