What happens to the fix rates available if interest rates rise??

Baby_steps_2

I have to re-mortgage this. I'm tempted to go on the lenders stv for 6 months to build up some extra LTV. My problem is there are some good fixed rates out there if I can get together another couple of 000's. If BoE increases the base rates are the fixes available likely to go up? Or will they stay at silar kind of rates?

Any advice would be great.

madeupname1

All lenders reserve the right to change their rates from time to time. There could be a rate on offer today, which gets withdrawn tomorrow. Although I think most lenders have an exception where, if you have applied for a rate before it is withdrawn, you get some time to complete the deal (in Abbey's case, this is 10 days). Therefore if there is a rise in the base rate lenders may very well put up the level of the fixed rates on offer. It just depends on what is happening in the market at the time. If the market in credit is easing, competition between the banks may keep fixed rates lower. My personal (and one might add uneducated view) is that if base rates rise later this year most fixed rates currently on offer will also rise.

dwsjarcmcd

Fixed rates are based on money market rates not BoE rates. These money market rates reflect rates over the period of the fix. Current fixed rates at around 4/5/6% relect this, plus of course add a margn for the lenders profit.

I would not assume that when BoE rates rise fixed rates will rise. Of course they may, or they may be around current levels or higher. You pays your money.......