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

gemmaking

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)

somethingcorporate

My crystal ball is cloudy today...please try again tomorrow!

Wh05apk

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.

HappyMJ

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.

m0ns00n

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