Remortgage rates up or down?

John424

Hi,

Halifax are offering me 3.53% on 75% LTV, 2 year fix with no fee. A few weeks ago it was 3.76%. Any Mortgage advisor views on whether it will go lower or higher or is it in the lap of gods?

I am tempted to bite as I am a mortgage prisoner and right on the mortgage threshhold so waiting might reduce my equity level if they lower my house value.

John

John424

Bump . No views anyone?

latecomer

Personally I dont see them going down much further as BOE rates are already near 0%.

Thought the definition of a mortgage prisoner was someone in negative equity who couldn't remortgage?

But thats just my personal opinion

Conrad

If you listen to the Govenor of the Bank of England he always makes the point he has no idea what rates will be and that anyone else claiming to know is essentially a charlatan / fool.

We can guess they will stay the same for a while longer and then perhaps rise. Too many variables to possibly know - for example no one knows what will happen in terms of bailing out Spain or Greece.

John424

Halifax bloke said they are all dropping due to swap rates and this new funding scheme in place but yes I appreciate the crystal ball element else I guess arbitrage would be possible! Mortgage prisoner being working on contract basis rather than permanent so can't move anywhere currently easily.

LittleMissAspie

I am just a layman but I had this dilemma too. My bank had a fixed rate at 3.89 so I chose to remain on the 3.69 SVR after the last fix ran out. Now they have dropped the fix to 3.59. I don't know if it will drop further but I have applied for it because 1) it's less than the SVR and 2) in the grand scheme of things it's a great rate, I doubt my parents ever paid such a low rate.

John424

Fixed for 2 years at 3.54%, was tempted by 5 year mortgage at 3.84% because if the economy really is coming out of recession now then the BOE will be slamming on the brakes by the time my 2 year fix is up and a 5 year 3.84% would have been a dream.... It's all a gamble really