Base Rate This Time Next Year?

IAMIAM

With the month on month increases happening, what are thoughts on BOER this time next year?
My 2 year fix at 1.44% 75% LTV is due for renewal then, and at present trends of the cheapest being 2.5% presently.....do we think base rate will be around 2.5% with 2 year fixes at 4-5%?

london21

Think might get to 2% but lenders might charge  3-3.5%.

Hard to predict but looks like might get to 1.5% by the end of the year. 

simon_or

Impossible to predict but I think around 1.5-2% or so.

Impact on mortgages is not always proportional to the change in base rate. For example high LTV fixed rates have actually stayed the same or even dropped a bit in the past few months while low LTV fixed rates have jumped from around 1% to 2%+ in the same time.

There are a lot of unknowns.

ACG

I think the base rate will be 2% by the end of the year from what I have heard through the grapevine - the same people told me it would be 1.5% by August which seems quite likely. 

In terms of Mortgage rates, it depends on the LTV. Under 75% LTV I reckon no more than 3%. 

But what do I know? Last year I tied into a 2 year fixed rate thinking it would be next year before rates started going up. I am now paying over £2k in ERCs to tie into a 5 year fixed rate.

coypondboy

If the pound continues to fall and BOE forced to prop it up could be a lot worse.  Lenders will also start to adjust rates based on risk so those with low LTV expect to see higher rates.  Glad I fixed at 1% last September for 5 yrs with 5 yrs left on the mortgage.  Feel sorry for anyone with a large mortgage think severe recession coming which will lead to hpc.  I think a re-run of what happened in early 90's on the cards.

IAMIAM

What the hell!!! 

Thrugelmir

coypondboy said:

If the pound continues to fall and BOE forced to prop it up could be a lot worse.  

No much that the BOE can do regarding the US $ exchange rate. As a US Treasury Secretary of State said in the earlier 70's. "It's our currency and your problem". 

getmore4less

coypondboy said:

If the pound continues to fall and BOE forced to prop it up could be a lot worse.  Lenders will also start to adjust rates based on risk so those with low LTV expect to see higher rates.  Glad I fixed at 1% last September for 5 yrs with 5 yrs left on the mortgage.  Feel sorry for anyone with a large mortgage think severe recession coming which will lead to hpc.  I think a re-run of what happened in early 90's on the cards.

September(ish) was the sweet spot even for those with one or two year left with ERC.

People fixed to protect against rises then ignored the drops and then the rises.

WebsterR

My current mortgage is finishing in November, with the predicted interest rate rises and then mortgage rate rises would it make it worthwhile to pay the early exit fee to tie down to a lower rate?
Been offered a fix at 2.49% currently but would have to pay £1400 exit fee to take that up. 
Would it be better to wait until September as there would be no exit fee, but risking rate rises?
Any help would be much appreciated.

K_S

@websterr If you're considering a remortgage (new lender) - most mainstream remortgage offers are valid for 6 months so depending on when exactly your current fix ends in November, you should be able to secure a rate soon. With lenders like Nationwide, you can even 'reserve' a product for 90 days so along with a 6 month offer validity should comfortably take you to November.

If you're only considering a product-switch/product-transfer/rate-switch (staying with the current lender) then how soon you can 'secure' a rate will depend on the specific lender's policy.

WebsterR

K_S said:

@websterr If you're considering a remortgage (new lender) - most mainstream remortgage offers are valid for 6 months so depending on when exactly your current fix ends in November, you should be able to secure a rate soon. With lenders like Nationwide, you can even 'reserve' a product for 90 days so along with a 6 month offer validity should comfortably take you to November.

If you're only considering a product-switch/product-transfer/rate-switch (staying with the current lender) then how soon you can 'secure' a rate will depend on the specific lender's policy.

Thank you for this, I think my currently lender were maybe being being slightly obscure with the information they were providing me.
My mortgage term ends 30/11, so will have a look into the new mortgage lenders terms asap.