What way are mortgage rates going? How long to fix?

padington

killergibbo wrote: »

brexit is going ahead we are now in the year 2017 and its september, its not june 2016 wake up.

BrEXIT is not going ahead. A stupid fudge is going ahead. It's not an exit though, we'll still be in the bar but we'll just have to pay more for the drinks than everyone else.

It will be considered the dumbest move we've made for a hundred years. The cost of everything will go up but otherwise nothing much else will change, apart from a few more queues when you go on holiday.

The biggest risk is fixing for five due to Corbyn getting in now as the public get vexed how expensive beer, gas, electricity and just about everything else becomes.

phillw

padington wrote: »

BrEXIT is not going ahead. A stupid fudge is going ahead.

I don't think it will be possible to avoid all of the fall out of brexit, unless we bury farage and boris under the lie bus and all the leavers wake out of their hypnotic trance.

Rates can't drop much further, they can rise.

wymondham wrote: »

Not so sure... The BoE keeeeeppppps on warning rates are going up, but when they have their meeting each month it magically stays the same. Just the discussion about rates going up having the desired effect maybe?

As far as I recall the warnings have all been for the medium term future, maybe later this year or next. When they finally raise rates and everyone complains, they will be able to say they gave us enough notice.

padington

phillw wrote: »

I don't think it will be possible to avoid all of the fall out of brexit, unless we bury farage and boris under the lie bus and all the leavers wake out of their hypnotic trance.

Rates can't drop much further, they can rise.



As far as I recall the warnings have all been for the medium term future, maybe later this year or next. When they finally raise rates and everyone complains, they will be able to say they gave us enough notice.

Rates can go negative but not raise much further, how many people can afford to double their mortgage interest payments? Printing money is the only game left if immigration and wide cuts are not implemented.

Herzlos

ruperts wrote: »

I'd fix for the number of years it'll take you to get to 80% LTV, which with a bit of overpayment ought to be about three years I would guess? That would give you the advantage of a lower rate short term, and the ability to offset any rise in the base rate with a lower rate through reduced LTV.

This looks like the way to go, I can potentially get down to the 75-85% band which saves me 1ppt. Standard rate is currently 3.64%, 85% band fixed is 3.69, 75% band is 2.69.

So if I stay on the standard rate and throw some money into it, I should be able to fix at the 2.69%ish and only pay slightly more than currently (2.29%). I can hopefully cross that threshold by Easter, depending on how generously the bank value the house.

If it looks like it's going to shoot up between now and then, I can always take the 2-year 3.69% rate.