Base Rate This Time Next Year?

Thrugelmir

WebsterR said:

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.

Your lender isn't going to provide "advice".  Decision is entirely yours to make. 

Sarah1Mitty2

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.

How high were interest rates then though?

Dandytf

I expect Nationwide fix rates to be 2.5% at least next year,
Hopefully then I can be tempted to fix from 2 years or more.
Only concern is how many uk rate rises there is during this and next year.
I can swap from early 2023, longer term I suspect boe base rates will rise towards 4.5% again, 2025 anyone.

thanks

Thrugelmir

Sarah1Mitty2 said:

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.

How high were interest rates then though?

This will provide an indication. Add 1% - 2% to the figures. 

https://www.bankofengland.co.uk/boeapps/database/Bank-Rate.asp

lmitchell

Dandytf said:

I expect Nationwide fix rates to be 2.5% at least next year,
Hopefully then I can be tempted to fix from 2 years or more.
Only concern is how many uk rate rises there is during this and next year.
I can swap from early 2023, longer term I suspect boe base rates will rise towards 4.5% again, 2025 anyone.

thanks

4.5% by 2025?! No chance.

If anything, given the stuttering economy forecasted between now and then, base rates might hit 2-2.5% but then freeze or even drop back a tick or two IMO. Hence why 2-year fixes are currently pricier than 5-year fixes with many lenders.

Aberdeenangarse

No one appears to have predicted 5.25% ?

Strummer22

Aberdeenangarse said:

No one appears to have predicted 5.25% ?

This thread aged well! 

michaels

For some context, I fixed at 4.5% at the end of May 23 (ie the 'years time; of the OP) for two years, I think at the start of May 4% 2 year fixes were available, so definitely higher than even the most pessimistic suggestion which I think was 3-3.5%

Sarah1Mitty2

Aberdeenangarse said:

No one appears to have predicted 5.25% ?

Some people did, I think 7% base rate easily in reach now.

VNX

Strummer22 said:

Aberdeenangarse said:

No one appears to have predicted 5.25% ?

This thread aged well! 

I didn’t clock the dates on the first postings and I thought it was a new thread I was reading it thing whaaaaat 🤣