Will new fixed rates go up tomorrow?

wharty

Hi

I’m looking to get a mortgage soon and was wondering how lenders normally react to the BOE increasing interest rates?

I know trackers and variables are different but what about fixed rate mortgages?

For example if I can get a 5 year fix today at 2%, is it likely the same mortgage product will go up to 2.25% or will lenders wait?

I’m thinking Of Nationwide Building society and was wondering how they normally react.

Thanks in advance.

dunstonh

Will new fixed rates go up tomorrow?

Why would they go up tomorrow? Have I missed something?

what about fixed rate mortgages?

It can depend on how the fixed rate is being funded and how much they have allocated and used up. They could pull the rate early or they could let it get to the end.

Fixed rates are typically offered in tranches with £x available. If they hit their limit for that tranche early, it gets pulled early.

kingstreet

The markets are reacting to changing data all the time.

As the outlook for rates is generally higher in the short and medium term many products are already reflecting that outlook.

They don't wait for a base rate increase then all hike their products as typically new products are not connected to the base rate but to the swaps they use to fund them.

ACG

I think a lot of lenders increased their rates earlier this month but some seem to have brought them back down again.

We have not been made aware of any increases happening tonight.

Richard_Pia

HSBC are increasing a number of market leading rates tonight.

ChopperST

The two year fix I wanted at 1.34% (65% LTV) with Nationwide went up 0.15 to 1.49% overnight.

Current deal ends 24 July so have one more month to book the new rate. Hoping for no more jumps till then!