interest rates going up tday?

redballoon_2

i have a variable mortgage of 64,000 on a house worth 185,000. paying 408 per month

Should i change to a fixed mortgage considering that the interest rates may go up again? I am with HSBC.

Any advice?

Thanks

ajb_tic_tac

I have never every been the kind of person who would like to fix their interest rates.

I would bet that in most cases of fixed deals the banks and building society would win. Otherwise why would they offer them?

I'm the sort of person that likes to take the rough with the smooth. I know interest rates may go up again today but I truly don't believe they will ever rise to very very scary levels for long.

lisyloo

I personally think rates will rise next year.
Probably one or twice.
I fixed a couple of weeks ago but since then the rate I took has gone up 0.5%.

I felt that fixing was a good idea, but I would question whether you are too late.
Fixed rates have gone up and most include a couple of rises anyway so you would have to calculate whether it's worthwhile.

What I mean by that is, if fixed rates are currently 0.5% above your current variable rate then you would have to decide whether that is worthwhile.

I don't know what rate you are on, but off the top of my head I think you have probably left it too late to get a good deal, meaning that it's probably not worth fixing now.

What level of rates can you afford?
If you can easily afford a couple of rate rises then you don't have too much to worry about.

mi-key

I think we all agree a rise today is going to happen. According to hints dropped by various BOE people, there will be another rise in Feb ( I think they want to put it up more than 0.25% today really, but are splitting it to make it less of a shock ).

Quite a few people are predicting more rises next year, and a lot of lenders seem to have already put up their rates to account for two rises.

tonydee

What time is the decision due ?

ariba10

Well it is not all bad news then.

chickenfriednice

If the predicted rise is announced today will banks instantly put up there fixed rate mortgages? I'm supposed to be applying for a fix rate mortgage with my financial advisor tomorrow but if the fixed rates go up .25% between now and then I will be super mad!

Does anyone know?

Thanks

skintlass

I'd like to know the answer to that as well.

jimmyboy420

Not neccesarily, they will possibly already have factored it into account.

InMyDreams

chickenfriednice wrote:

If the predicted rise is announced today will banks instantly put up there fixed rate mortgages?

Today's rise (assuming there will be one) will already have been factored into whatever fixed rate you'll be offered. As will the probibilities of future rises (or falls). Not to say that they won't put their fixed rate up again, but it won't be affected by todays's change, but how they see things panning out over the next few months/years. It's all connected of course, but the difference between today and tomorrow is not as crucial as I think you fear.

IMD.

chickenfriednice

excellent! Thats what I wanted to hear, I will sleep better tonight!

Thanks for the heads up