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5 Year Fixed rates tell us what?

edited 30 November -1 at 1:00AM in Mortgages & Endowments
3 replies 884 views
Mr_SingletonMr_Singleton Forumite
1.9K Posts
edited 30 November -1 at 1:00AM in Mortgages & Endowments
Decided to do a 5 year fix on my recent mortgage.

Was surprised at that the rate was only 2.9%. Have seen others on rates from around 2.75% to 3.4% and up.

What is this telling us about what the banks think is going to happen to interest rates over the next 5 years?

Rates can't get appreciably lower but can increase markedly in response to market conditions. Have the banks got it wrong?


  • The rates have come down a lot over the last year and there are many 5 & 10 year fixes available too.

    Some analysts have suggested the rates could come down further following QE at European Central Bank.

    Obviously, no one know for sure what will happen.
  • amnblogamnblog Forumite
    11.8K Posts
    Eighth Anniversary 10,000 Posts Name Dropper Photogenic
    It's to do with the rates are lending to each other now. Given the lack of inflation and high interest rates in the stable world it is to be expected.
    I am a Mortgage Broker

    You should note that this site doesn't check my status as a Mortgage Broker, 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.
  • edited 1 March 2015 at 8:40AM
    DreamerFTBDreamerFTB Forumite
    82 Posts
    edited 1 March 2015 at 8:40AM
    with what ltv did you get that rate?
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