Likelihood of interest rates rising/falling

Thrugelmir

amnblog wrote: »

How many 'experts' predicted 7 years at 0.5%

I detect complacency though as it's become the norm. There's a generation in for a shock. As the effects of Central Bank and Treasury intervention wane.

lydriver

as I say I've never had any reason to look at this before.....

but I thought mortgages have only been really low rates for a little while
but interest rate has been 0.5 since the crisis?
what were mortgages like in say 2010?

Red-Squirrel_2

lydriver wrote: »

as I say I've never had any reason to look at this before.....

but I thought mortgages have only been really low rates for a little while
but interest rate has been 0.5 since the crisis?
what were mortgages like in say 2010?

Well, in October 2010 I got a rate just above 4% for a 5 year fix with a 25% deposit and a perfect credit file. That was considered pretty good at the time but would be shocking now!

kingstreet

Lenders used the FFL scheme to lend at lower rates and have continued low-margin lending since, to attract market share.

A lender can't offer a long-term fix then fund it using short-term borrowing. If it is offering 10 years at 2.99%, it has arranged a swap for the same period in the markets and is making a "turn" on the difference in the rates.

Thrugelmir

lydriver wrote: »

but I thought mortgages have only been really low rates for a little while

In the lead up to the crash of 2008. Rates were historically low. What may come as a shock to many people will be the clear margin above base that lenders charge as the situation changes. Days of base plus sub 1% are well and truly over.