Will mortgage interest rates increase if coronavirus becomes an epidemic?

My_username

@ dimbo61
 I guess in case the rates go further down..?

daivid

Trackers may go down further, fixes are rising very slightly. Also banks are tightening affordability criteria, If you want a 2/3/4/5/10 year fix you are unlikely to do much better than now, furthermore rates can only improve very slightly (as already said lenders factor in profit) but could get worse by much more.

RetSol

I am considering a re-mortgage to a 10-year fixed rate interest-only mortgage.  I am currently paying 0.99% (BSE + 0.89%) and my deal runs out in 4.5 years. If I can get a 10-year fix at 2%, or less, I will probably pounce.  That said, the cheapest seems to be c. 2.09% so it's there for the taking, near as dammit.  However. I am happy to sit it out  and wait until the dust settles on C-19.  At the end of the day, I have  a little bit of time to play with and I am willing to sell and re-locate, if necessary. I have enough equity in my property to come out of it mortgage-free, even if property prices fall.  I am currently reviewing my finances generally.  As someone once said, the difficulty is not in making in a decision, it is in knowing when I have made a decision and, once I've made it, knowing what it was. 

dimbo61

Hi RetSol
I think you might want to start a new post.
However getting Interest only deals are now more difficult.
Would I give up that kind of tracker No Chance.
4.5 years is a long time and I am willing to guess that any 10 year fix will have a £1000+ fee.
You also talk about moving and becoming mortgage free.
You have flexability and can overpay if you have no other expensive debt ?
No ERC if you pay the mortgage off /Move and get another property 

RetSol

Hello Dimbo61. Thank you for your thoughts.  Apologies for the breach of etiquette - I got carried away as I find it so helpful to put the issues down in writing.  I am feeling a bit twitchy about the mortgage although it's needless at the moment, as you point out.  I have signed up for the mortgage-free wannabe thread to concentrate my mind on paying down in the short term.