IR on hold again grab a deal

RenovationMan

movilogo wrote: »

And many buyers are now accustomed to the fact that their monthly mortgage will be same for rest of their lives.

Oh I dunno about staying the same; while the BoE rate has been 0.5% since I bought my house, my mortgage rate has gone down by £106 per month due to overpayments. Most of the people I know are doing the same with their mortgages - making hay while the sun shines.

macaque_2

moneyinmypocket wrote: »

Plenty of nice places on market make an offer rates on hold again

Home buyers do not borrow from the BOE and there is a distinction between base rates (which are on hold) and mortgage rates (which are rising).

The Bank of England this week kept interest rates at 0.5 per cent for the 34th successive month, yet the cost of trackers and short-term fixed-rate mortgages is edging up. And with pressure growing on lender margins, experts believe mortgage rates may continue rising over the coming months.

Once the current round of fixed-rate tranches is exhausted I expect these to rise as well, to reflect the cost of funding.

PaulF81

macaque wrote: »

Home buyers do not borrow from the BOE and there is a distinction between base rates (which are on hold) and mortgage rates (which are rising).

not if you are on an existing deal it doesnt!:beer::T:j

RenovationMan

HSBC has a lifetime tracker mortgage at 2.49% (BoE + 1.99) fee free. This is cheaper than the tracker deal I did in 2010 when I bought my house. It seems that some mortgages are falling, not rising.

2.49% Term £0 2.5% APR 65% Our opinion: TRACKER - This variable mortgage charges 1.99% above base rate for the term of the mortgage, giving a current pay rate of 2.49%. There is no arrangement fee and a minimum deposit of 35% is required. There is no Early Repayment Charge on this product. HSBC

PaulF81

thats the deal we are on. they have increased ltv required by 5% since we got it, the real bonus is no max overpayments... its 2.49% by the way RM, not 2.55!

its tied to base rate as well, not to a special rate such as barclays, who have their own rate which is supposed to track base, but not guaranteed to. which is why we went with hsbcand not barclays..

http://www.barclays.co.uk/Savings/BarclaysBankBaseRate/P1242557964824

Thrugelmir

DaisyWheel wrote: »

But mortgage rates aren't rising.

The three-month sterling LIBOR at 1.08894% on 9 January, hit its highest level since July 2009.

Recent daily LIBOR rates. To illustrate the trend.

5 January: 1.09%
28 December: 1.08%
20 December: 1.07%
13 December: 1.055%
6 December: 1.05%
30 November: 1.04%
24 November: 1.03%
17 November: 1.01%
10 November: 1.00%
24 October: 0.98%
17 October: 0.97%
10 October: 0.96%
3 October: 0.95%

Thrugelmir

DaisyWheel wrote: »

The fact is: mortgage rates aren't rising.

What facts?

PaulF81

The fact that my tracker repayments are the same now as they were 20 months ago?