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Mortgage rate in the near future? Increasing? or decreasing ?

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Are mortgage rates set to increaes? or decrease in the years to come?

in the next 2-3 years?

(lets say the economy gets more downhill)

Comments

  • My crystal ball is cloudy today...please try again tomorrow!
    Thinking critically since 1996....
  • Wh05apk
    Wh05apk Posts: 2,938 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    edited 27 July 2012 at 9:58AM
    gemmaking wrote: »
    Are mortgage rates set to increaes? or decrease in the years to come?

    in the next 2-3 years?

    (lets say the economy gets more downhill)

    Yes, more than likely. :)

    Without major improvements in the economy, I can't see the need for the BofE to raise base rates, although if UK PLC is the next to be picked on after Ireland/Greece/Spain/Italy then bond rates could rise dramatically.

    At the moment central banks seem to be throwing money into the system to try to hold rates down, and currently lenders are reducing rates, but ultimately these changes are minor, whether you pay 3 or 3.5% is not going to make a dramatic difference to most people.
    I am a mortgage adviser.
    You should note that this site doesn't check my status as a Mortgage Adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.
  • HappyMJ
    HappyMJ Posts: 21,115 Forumite
    10,000 Posts Combo Breaker
    Hopefully it goes down further and they pay me to borrow money off them.

    p.s...it won't drop any further.

    It's a gamble....do you fix or do you get a lower variable/tracker rate? The choice is yours. You will probably choose the wrong bet so you can hedge your bets by getting a mortgage which is half fixed and half variable. They are quite rare but there are other hedging options available to you.
    :footie:
    :p Regular savers earn 6% interest (HSBC, First Direct, M&S) :p Loans cost 2.9% per year (Nationwide) = FREE money. :p
  • m0ns00n
    m0ns00n Posts: 359 Forumite
    HappyMJ wrote: »
    Hopefully it goes down further and they pay me to borrow money off them.

    p.s...it won't drop any further.

    It's a gamble....do you fix or do you get a lower variable/tracker rate? The choice is yours. You will probably choose the wrong bet so you can hedge your bets by getting a mortgage which is half fixed and half variable. They are quite rare but there are other hedging options available to you.

    I hear these guys are pretty good: http://www.hedgesdirect.co.uk
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