Bank downgrades - what might it mean for mortgage rates?

JenE_2

Hi all
We've seen a house we like, need to 2nd view etc, so I'm getting the ball rolling on sorting out a mortgage.
What do you think this morning's news of the downgrades of the banks will mean for mortgage rates? Should we crack on and get something sorted quickly, or is there any point in waiting a week or two? (The vendors are on holiday for 3 weeks so we can't even go and 2nd view until they're back, then we'll haggle over price etc)

Thanks

Wh05apk

Until you have had your offer accepted, there is not a lot you can do mortgage wise except get an agreement in principle.

What will happen to mortgage rates, probably not a lot, central banks seem to be pumping billions in to try to get lending going/funding costs to banks have been high, who knows what will happen, personally I think if you want to buy now, buy now, it will not make much difference either way.

kingstreet

These downgrades have been expected for a long time and were discounted by the market during that time. The impact should be negligible in the short-term. Swap rates have fallen, as reported, so lower loan to value fixed rates are at some of the lowest levels we've ever seen.