Warning! Cost of fixed rates to soar

meanmachine_2

No wonder Halifax withdrew the 4.99% I was looking at.

Won't see the likes of that for a few years...

1 yr swap now at a ball-busting 6.16%!!

http://www.swap-rates.com/UKSwap.html

free4440273

any ideas/guesses/advice on whether it would be sensible to wait for higher increases in fixed rate bonds? for example, Halifax are offering a one year bond at 6.30 per cent at the moment (which is indeed a decent rate)...

meanmachine_2

Swap rates website has been updated.

The cost of fixed rates is still rising.

6.12% for a 2 year fix is the highest I've ever seen it. Although that's probably not saying much, as I've only been aware of "swap rates" for about a year...

http://www.swap-rates.com/UKSwap.html

MortgageMamma

The lenders have been pulling deals fast towards the end of last week - portman, northern rock, alliance and leicester, Abbey amongst others all did

Wonder what the BOEBR will do on thurs? I think they will hold it this month to assess the impact of last months rise but we will see a further rise this summer

MM

meanmachine_2

Aye.

Do nothing till August, then nudge up to 5.75% - barring some kind of inflationary shock either upwards or downwards.

ManAtHome

Think it will be a very close one - difficult to guage consumer reaction on a single month, and plenty of negative news on fuel and food (food one here http://business.scotsman.com/agriculture.cfm?id=866142007 ). Of course, the BoE are likely to drag it out - we have been 40%+ over their target for the last year, prompting the draconian 1/4% every 3 months or so...

free4440273

...selfish i know but i really do hope they do DOT reduce rates soon: my fixed rate bond with nationwide expires october, and i am looking to re-invest

MortgageMamma

same old thing, great for savers bad news for borrowers

I remember the good old days when the halifax did a 2 year fixed for 4.29% with a small fee. I think there are a lot of people coming of that product in august I think and they will be in for a shock

free4440273

MortgageMamma wrote: »

same old thing, great for savers bad news for borrowers
I remember the good old days when the halifax did a 2 year fixed for 4.29% with a small fee. I think there are a lot of people coming of that product in august I think and they will be in for a shock

...agreed, but for far too long (read as 'bubbles' and 'property') it's been the other way round. savers deserve their just rewards for being prudent - and wise

johnydeath

I was one of the lucky ones who got a 5 year fixed with the Portman at 3.99% around 4 years ago.

Unfortunately I had to redeem it early

meanmachine_2

Blimey, 2 yr fix now at 6.19%.

That's a big jump.

Expect more deals to be withdrawn if that price is sustained.

http://www.swap-rates.com/UKSwap.html