BoE rate rise coming?

Glass_half_full_6

With the news machine being fed a constant stream of inflation/interest rate content, it would seem not a case of 'if' but 'when' there will be a rate rise.

So when's the time to start making enquiries about a new (fixed rate) mortgage deal? What and where are the best deals around? And are fixed rates likely to increase in line with the increasing BoE rate?

I'm the proud owner of an Abbey flexible tracker (BoE+0.49%).

beecher2

Well it has always been 'when' not 'if' - it can't stay at 0.5% forever. You're very unlikely to get a better deal than 0.49% and you should have build up a fund in your savings account, or paid off debt with such a low rate. Keep saving and overpay when rates do go up, but you've got a way to go before you start thinking of jumping onto a fix in my opinion.

GMS

Your current rate will not be matched by a new fixed rate. You may well be able to see a few rises before your current rate looks like a fixed of today.

Problem is as rates rise so will the fixed rates so if you want some security consider a fixed rate. Rates of today will not be around when the bank rates move.

fraser

http://www.moneymadeclear.org.uk/tables/

have a look at the whole of market tables from the FSA

ILW

Fixed rate deals are already being pulled or the rates upped.

Thrugelmir

ILW wrote: »

Fixed rate deals are already being pulled or the rates upped.

Spot on. Fixed rates are determined by swap rates not BOE base.

Swap rates have been drifting upwards for a few weeks now.