When will rate cut be passed on for fixed rate customets

Glover1862

Mr_Incredible said:

Deleted_User said:

Some lenders have reduced rates
Some will reduce them soon
Some have increased rates

There is no hard and fast rule about rates changing because if last weeks announcement 

So you don’t know 

I doubt very much any lenders will increase rates but thank you for your contribution 

How can anyone know unless you are on the executive board for every lender, everyone will find out once it’s officially announced, keep an eye on the lenders website. As for increasing, hsbc will be increasing some fixed rate, it’s quite possible lenders don’t want to increase market share at a loss when they don’t have the staff to deal with the extra business, margins are slim already so not too much lower they can go. You ask an opinion based question then expect a precise answer.

Dandytf

Natwide from beginning of April.

dimbo61

We have a Barclays tracker deal which drops by 0.5% on the 1st of April.
However we are in a totally unknown situation with Covid 19 and world markets.
Many companies and jobs are on the line.
Aircraft manufacturers, Airlines, Travel industry, Pubs, bars and restaurants, the whole of the tourist industry both here and abroad.
Rates have never been this low so consider your circumstances and need for short or long term security !

Whats_your_forte

Mr_Incredible said:

I doubt very much any lenders will increase rates but thank you for your contribution 

HSBC did

Mr_Incredible

The city says that indeed fixed rates will come down within a week or so.

thanks 

Whats_your_forte

Mr_Incredible said:

The city says that indeed fixed rates will come down within a week or so.

thanks 

Source please?

[Deleted User]

Whats_your_forte said:

Source please?

The City is the source. The whole of The City is in unanimous agreement.  Even the lenders that arent based in The City are passing on the rate cut because The City said so

amnblog

Lets be clear here.
A base rate cut means an immediate reduction for most mortgage payers on base rate tracker products.
Why not all?
Some will have a collar on their product meaning the pay rate cannot go below a certain level.
Also, a base rate cut does not mean an automatic rate cut at the same level for new borrowers taking tracker rates.
Why?
Lender will often reprice their base rate trackers for new borrowers to improve the lender's margin - this reduces the benefit of the rate drop.
Fixed Rates
The majority of borrowers hold and take fixed rate products - we should not expect 0.5% drops in these rates
Why?
1. Fixed rates are not linked to the BOE base rate. They are a function of the rates at which banks are lending to each other.
2. Fixed rates are already at an all time low
3. An individual lender will adjust fixed rate pricing to manage business flow
So what will happen?
Who knows, globally we are dealing with issues no one currently alive has encountered before.
Borrowers should remember that fixed rates are there to provide security of payment in troubled times. Taking a risk by not securing a fixed rate in the hope of a lower rate down the road flies in the face of their purpose.

Mr_Incredible

Whats_your_forte said:

Mr_Incredible said:

The city says that indeed fixed rates will come down within a week or so.

thanks 

Source please?

The City 

Whats_your_forte

Mr_Incredible said:

Whats_your_forte said:

Mr_Incredible said:

The city says that indeed fixed rates will come down within a week or so.

thanks 

Source please?

The City 

Manchester or Hull?