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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
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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?

Replies

  • 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
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    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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