Waiting to go on fixed rate, playing the game

treguard1982

We're currently on the standard variable rate with Natwest, and have been enjoying payments of £380 per month for the last half year (getting to around the 90% LTV mark finally!)

We have been looking at 2 or 5 year fixed rates with Natwest, but probably what we'll do is wait till January 13th when the BofE make their decision over the base rate, and then if it does increase, phone Natwest and go onto a fixed rate deal.

In the past 2 years, Natwest have always taken a week or two to change their fixed rate deals once the base rate change was announced. I'm just wondering this time, when the base rate does eventually go up, do you all think that Natwest won't change their fixed rate deals until 1-2 weeks after or will do it immediately on the day?

The reason I'm asking, is because while I can keep my payments at this amount, I'd like to, but once the base rate starts increasing, then it'll be time for us to fix.

Is anyone else playing this game in a similar way or fix your deals on the day base rate changes are announced?

opinions4u

In the past 2 years, Natwest have always taken a week or two to change their fixed rate deals once the base rate change was announced

It's nearly two years since the last base rate change. Rates were falling, so hanging out there with a higher priced fix while the market settled protected the bank, not the consumer.

In my view, lenders will pull their product ranges within minutes of an upward base rate change.

Is anyone else playing this game in a similar way

If they are, they should expect to pay more for a fixed rate when the time comes.

northerner999

If you can get a good five-year fix now and are convinced a fix is what you want then go for it, seems a big gamble to try and get a few months on the lower SVR. Think of the consequences of mis-timing it, you'll have saved for two or three months maybe but then be on a higher rate for five years.

Gorgeous_George

If base rates rise in January I will run naked through Yeovil town centre. (well, maybe not)

The dangers of your plan may not be obvious. I don't expect base rates to rise in the New Year but whilst you hold out, house prices could fall and you may no longer have 90% LTV. You could find yourself stuck on SVR without the option to fix.

On the other hand, fix for 2 or 5 years and the fix could end just as base rates start to rise.

It's a game of poker. I'd hold out.

GG

Peelerfart

I think the good people of Yeovil are safe from such an "interesting" spectacle and as such agree with GG.

I would hold hold out as well,but in my opinion, there will be a rise in 2011,but will it be significant enough to initiate a rush to fix ?