No Base Rate rise potentially till end of 2013

RenovationMan

wotsthat wrote: »

I can guarantee that when BoE rates rise there will be much mirth and merriment on this board and your internet buddies will all be asking after you to make sure you're ok.

I've already telegraphed to them that I will be getting a 10 year fix once my discounted deal ends in 12 months. It caused consternation with at least one 'buddy' moaning that I should get a fix now because 'they won't be available in a year's time'.

RenovationMan

chucky wrote: »

We'll become one of the world's biggest exporters which will be great news for job prospects and the manufacturing sector.

We'll have a low crime rate, youth respecting their elders and no louts rolling drunk down the streets. Bring it on!

shortchanged_2

RenovationMan wrote: »

I've already telegraphed to them that I will be getting a 10 year fix once my discounted deal ends in 12 months. It caused consternation with at least one 'buddy' moaning that I should get a fix now because 'they won't be available in a year's time'.

That certainly is good advice Renoman.

DervProf

RenovationMan wrote: »

Sorry, I'm bored of having the same conversation with the same people. If anything changes to BoE rates, then someone please nudge me awake. In the meantime I'll just quietly renovate my house and pay down my mortgage.

Well that's quite a change.

So far, RM seems to have made a lot of noise about his "plan".

Peace, at last. :beer:

RenovationMan

shortchanged wrote: »

That certainly is good advice Renoman.

We'll see in 12 months or so. I doubt that mortgage rates will go up to the point that it's worth the punative redemption costs of ditching my current deal, not including the costs of losing a 2.05% tracker for a year while I swap for a 4.99% fix.

It may even be the case that Libor rates fall in 12 months time if the global economy moves into less choppy waters, making it cheaper, not more expensive for those of us with good credit ratings and good LTVs to get a fixed rate.

PaulF81

yep planning the same, chop to long term fixed, just before the market publically figures rate rises are due.

Graham_Devon

PaulF81 wrote: »

yep planning the same, chop to long term fixed, just before the market publically figures rate rises are due.

I have a feeling that this is the same plan across many with tracker rates. The key is timing, and a lot of guesswork. Some will suceed, some will fix well before they could have, some will be left swimming with no trunks in the water.

chucknorris

Graham_Devon wrote: »

I have a feeling that this is the same plan across many with tracker rates. The key is timing, and a lot of guesswork. Some will suceed, some will fix well before they could have, some will be left swimming with no trunks in the water.

There's absolutely NO WAY that I will surrender my trackers, I have never gone for the headline low fixed rate deals that you have to pay an arrangement fee for every 2-4 years.

The_J

The base rate won't see anything but token rises for the next decade.

RenovationMan

Graham_Devon wrote: »

I have a feeling that this is the same plan across many with tracker rates. The key is timing, and a lot of guesswork. Some will suceed, some will fix well before they could have, some will be left swimming with no trunks in the water.

I don't see how that scenario will play out, unless you think we'll see a sudden huge rate rise by the BoE and all indicators say not for the next few years.

I agree that if you are trying to time it to perfection and grab the absolute lowest fixed rate deal, some people will jump in too early and some will jump in too late. However, the differences will be marginal and all of them will below what used to be considered the 'norm' for mortgage rates.

What won't happen is people getting burned before 2007 and fixing on higher rates and seeing BoE rates drop to 0.5%. As bears like to say, the only way is up for BoE rates from here. However, not for a good while yet.