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

IAMIAM

I have noticed trackers are much cheaper though....so basically rates are defo heading on a continuous upwards, trackers were more expensive last year, its the other way round now....

Snookie12cat

IAMIAM said:

I have noticed trackers are much cheaper though....so basically rates are defo heading on a continuous upwards, trackers were more expensive last year, its the other way round now....

I noticed this. I am on a 2yr tracker at 0.84% above base. Its still significantly cheaper than any 2yr fx around. The base needs to go up at least 0.6% for the rate to break even with the similar fixes right now. And surely and when the base goes up and they will go up again, it will still be cheaper. 

IAMIAM

Snookie12cat said:

IAMIAM said:

I have noticed trackers are much cheaper though....so basically rates are defo heading on a continuous upwards, trackers were more expensive last year, its the other way round now....

I noticed this. I am on a 2yr tracker at 0.84% above base. Its still significantly cheaper than any 2yr fx around. The base needs to go up at least 0.6% for the rate to break even with the similar fixes right now. And surely and when the base goes up and they will go up again, it will still be cheaper. 

Which is telling my base is going up to 1-1.5% over next 6 months or so

coypondboy

Makes sense to overpay/invest in stock market whilst rates have been so low but how many people have done this or just spent the extra on other things.  What would happen if rates went to 5% by end of next year and you had to go from paying a 1% mortgage rate to paying 5% i.e the interest only element increases by 500%.  Luckily I have enough in my ISA'S to repay mortgage at end of fixed term if this scenario occurs.  Just hope we don't get a HPC as many newer buyers will end up on SVR of lender if LTV goes above 95% which could mean a rate of 7%.