2 yr fixed rates hit 2.7% why have they gone up?

coypondboy

Noticed fixed rate mortgages going up sharply for those with small deposits wondered why and what happens when you come off one later this year or next year when it was only 1%?

Snookie12cat

coypondboy said:

Noticed fixed rate mortgages going up sharply for those with small deposits wondered why and what happens when you come off one later this year or next year when it was only 1%?

When your deal ends, you hope you did not over extend yourself by expecting rates to be at 1% forever.

MaryNB

coypondboy said:

Noticed fixed rate mortgages going up sharply for those with small deposits wondered why and what happens when you come off one later this year or next year when it was only 1%?

Banks tighten their belts, especially for high LTV mortgages when there economic uncertainty. Inflation is at a 30 year high, Bank of England has raised the base rate, and may do again. 

When your fixed rate ends, you can go onto either an SVR or a fixed rate product that is available at the time. If the new rates are higher, you pay at a higher rate. 

coypondboy

luckily my mortgage finishes when my 5 yr deal finishes on 1.05% but those with large mortgages and no help from bank of mum and dad may struggle with this increase although BOE bringing back self cert mortgages shortly to keep everyone happy and prevent a HPC

Thrugelmir

The era of cheap money post the GFC and subsequently the pandemic has come to an end. Printing money stokes inflation. Been a long time coming but interest rates will finally start to normalise again. 

getmore4less

coypondboy said:

Noticed fixed rate mortgages going up sharply for those with small deposits wondered why and what happens when you come off one later this year or next year when it was only 1%?

Low deposit have been hit less so far.
They went up during covid then came down again.
Nationwide hardly changed 95% but 60% went up 0.5%

MaryNB

coypondboy said:

luckily my mortgage finishes when my 5 yr deal finishes on 1.05% but those with large mortgages and no help from bank of mum and dad may struggle with this increase although BOE bringing back self cert mortgages shortly to keep everyone happy and prevent a HPC

When was that announced? I'm very surprised that they'd consider taking a massive step backwards. A lot of ways to make mortgages more affordable than bringing back liar loans. 

csgohan4

mortgage rates are going up across the board. Halifax raised theirs last Thursday before the BOE inevitable raise next week. LLoyds have also raised their interest rates as well.  It is all in anticipation and hedging what is likely to come, higher interest rates

Edi81

Swap rates in the financial markets have gone up particularly for shorter lengths. 

Why? Geopolitical unrest, inflation and interest rates getting to a long term norm again. 

[Deleted User]

coypondboy said:

Noticed fixed rate mortgages going up sharply for those with small deposits wondered why and what happens when you come off one later this year or next year when it was only 1%?

you want to know why fixed rates are going up? 

*gestures broadly at everything*

IAMIAM

Agreed. My cheapest 2 year fix is now 2.09%, I cant renew/fix until January 2023 for a June 2023 start. My current rate is 1.34% and I regret not doing 5 year fix. Ah well.