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I have noticed a lot of fixed rate deals have increased %'s over the last 4-6 weeks...
IAMIAM
Posts: 1,388 Forumite
Is this a good or bad sign? The 5 year HSBC deal I wanted has gone from 1.44% to 1.59% to now 1.69%
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Comments
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Interest rate rises are simply reflecting the broader economic sitiuation that prevails at the current time. The longer it continues the greater the cost of money will be.1
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A good or bad sign of what?
It's a bad sign that you'll pay more each month. It's a good sign that it's a still a crazy low rate of interest and rhey are still lending0 -
Intrest rates arent totally based on the bank of England base rate. They are also based on the level of risk to the bank in which that loan has, due to confirmation of a recession and it likely going to take a little longer to recover from it than first thought there is a greater risk to lenders. Although still incredibly low.Nationwide FTB 90%LTVFull applications 26/08Valuation booked 26/08Hard Search (equifax & Transunion) 04/09
Valuation completed 8/9
Valuation approved 30/9
More documents requested 30/9
Mortgage offer 16/100 -
Also at the moment based on how much they can get away with charging. Less competition allows them to increase rates without losing business.
Also, I get the feeling the lenders aren't desperate for the business. Its a case of 'here's our price, take it or leave it'0 -
If it is of any help, in 2012 when I bought my first home with a 15% deposit, the interest rate was 3.5%.
Quarter of a percent is not really that much of an indication, lenders can do that if they want to stem business volumes which I suspect is what HSBC want to do on the basis it can take a month to get an appointment with them.I am a Mortgage AdviserYou should note that this site doesn't check my status as a mortgage adviser, so you need to take my word for it. This signature is here as I follow MSE's Mortgage Adviser Code of Conduct. Any posts on here are for information and discussion purposes only and shouldn't be seen as financial advice.0 -
The interest rate also factors in a whole range of things. Including default risk. Defaults are expected to rise. So, the rate would go up to reflect that. There are dozens of influences on an interest rate level. Each pulling and pushing in either direction.I am an Independent Financial Adviser (IFA). The comments I make are just my opinion and are for discussion purposes only. They are not financial advice and you should not treat them as such. If you feel an area discussed may be relevant to you, then please seek advice from an Independent Financial Adviser local to you.0
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Who else suffered the 16.8% mortgage rate in the 80's? (gasp)Now a gainfully employed bassist again - WooHoo!1
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The Bank of England base rate was 17% in 1979 so we are now living in low inflation ( under 2.0%) and low interest times.
We paid 4.74% and 5.5% on our last 2 five year fixed deals so fix now if you need too.0
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