Fix your mortgage rate right now, says Bank of England’s Sharp

michaels

BillJones wrote: »

Er, thanks, I'm paid by the bank to trade them...

They are about as good an indication as anything as to where Libor is thought to be going, unless you've anything better to suggest.

If you can reliably out-predict the market then you probably won't be in a position where you need to worry about having a mortgage.

If you can't then overall a tracker mortgage should work out cheaper than a fix as you are not paying a premium to a providor for the certainty. However you might still choose a fix because the peace of mind offered by the certainty might be worth more than the premia charged (depending on your attitude towards risk, flexibility etc).

purch

BillJones wrote: »

Er, thanks, I'm paid by the bank to trade them...

They are about as good an indication as anything as to where Libor is thought to be going, unless you've anything better to suggest.

If you think they predict the future, then you crack on son :T

My old boss would have kicked my !!!!, if he'd found me typing drivel on a forum when I should have been losing money.

Times change :eek:

grizzly1911

michaels wrote: »

If you can reliably out-predict the market then you probably won't be in a position where you need to worry about having a mortgage.

If you can't then overall a tracker mortgage should work out cheaper than a fix as you are not paying a premium to a providor for the certainty. However you might still choose a fix because the peace of mind offered by the certainty might be worth more than the premia charged (depending on your attitude towards risk, flexibility etc).

On the basis the fix rate prices in likely movement at or above/below SVR depending on likely trend and fees are often charged at take up each deal. Then apart from the certainty of amount who largely benefits from the deal?

BillJones

purch wrote: »

If you think they predict the future, then you crack on son :T

Wow, that's pretty patronising.

What do you think more likely here, either that a rates trader completely misunderstands the product that he trades, or that we are speaking at cross purposes?

purch

I'm going for the first one.

You should spend more time "understanding" the market you "trade" and less time on these boards, especially the Jobs & Benefits board, and the other wierd places you post.

I'm amazed you find the time. In ye olden days we either were trading, or drinking
down the Mithras.

Times have changed.

Futures traders posting on MSE in between deals. Whatever next :eek:

Loughton_Monkey

purch wrote: »

In ye olden days we either were trading, or drinking down the Mithras.

Times have changed.

Yes. It closed down.

I blame the lower bonuses.