Have mortgage rates gone up?

Vicki116

I thought mortgage rates were going down on the 1st of April . I was waiting to remortgage with nationwide but the rates have gone up . 

Two year fix was 1.14 or 1.64 now showing 1.24 and 1.69.

i don't understand why? 

LRmortgage

Bank of England base rate went down, that doesn’t mean that fixed rate mortgages do. Most lenders but money in the money markets and not linked to BOE. 

With the economy the way it is, money has become more expensive to borrow for lenders, so they pass this onto their borrowers. 

Plus right now, lenders are lending less but still need to make profit / margin. 

Vicki116

Ok thanks for the reply .
i saw a Martin Lewis report with all the lenders and what the rates would go down by on 1st April . It seemed that most banks were dropping the rates so I thought it was best to rate till 1st but seems. not . 

So I should probably jump on a new deal now ? 

Thrugelmir

Vicki116 said:

i don't understand why? 

The current and future economic climate. Hard times lie ahead for many. Lenders will be factoring in an increased level of defaults. 

Vicki116

But what I don’t understand is Martin Lewis said rates would go down from the 1st but they’ve gone up ? 

He was wrong or I’m not understanding how this all works 

Thrugelmir

Rates that are directly linked to BOE base rate will go down, i.e. trackers. Rates that aren't linked will go up to compensate. 

Penelopa.Pitstop

Vicki116 said:

But what I don’t understand is Martin Lewis said rates would go down from the 1st but they’ve gone up ? 

He was wrong or I’m not understanding how this all works 

It was page about trackers and variable rates mortgages. For example, my tracker which was 1.44%, went down to 0.94% and will go down more from 15th of April to 0.79%. But you had to have tracker or variable mortgage in place already for it to go down.
My friend also thought that mortgage rates will go down because BoE rate went down. I told her to check remortgage rate at HSBC a month ago but she ignored it. When she finally checked it a few days ago, they all went up.

Pipi955

I have a base rate tracker mortgage, but I have just been informed by my mortgage provider that they will not reduce my rate until May. Surely that cannot be right?

ChopperST

As soon as the second rate drop hit I booked a 2 year tracker ready for 31 July.  Managed to get 0.84% and all booked and fees paid today.  Sub 1% seems to have disappeared from the market in the past few days...

ChopperST

Pipi955 said:

I have a base rate tracker mortgage, but I have just been informed by my mortgage provider that they will not reduce my rate until May. Surely that cannot be right?

What do your mortgage terms say?  My current Nationwide tracker passes the rate drop on the month after the change for example.

Vicki116

.Planet_Switzerland said:

I spotted that too, but I couldn't find a better mortgage rate without fees than Nationwide and this is probably as low as it will ever get.

You can remortgage to Nationwide on a 5 year fixed with as little as £25k left and get £500 cashback. At 1.69% without fees you're paying £1088 interest over 5 years, subtract the £500 cashback it's barely over £100 a year they make from your mortgage without considering the overheads. As an existing customer you can have as little as £5k left, which is less than £100 a year interest. They won't do these mortgages if they aren't at least making a little bit of money from you.

Yes I’m already with nationwide and will most probably stay with them . 1.69 was actually 1.64 over a week ago .
I have £106000
left and will need a two year fix only .