Fixed rate mortgages below 2% axed from the market as interest rates continue to rise

newsgroupmonkey_

donutandbeer said:

Windofchange said:

donutandbeer said:

Hi, where did you find the deals that are below 2%? We are buying and thinking of getting a very small mortgage (10% LTV) but the lowest interest rate we can see on our portfolio on our mortgage advisor website is 2.45%. Two months ago it was 2.2% so a 0.2% increase in the last two months. We are now keen to buy with cash because of the interest rate… 

The MSE mortgage Best Buy comparison site:

https://www.moneysavingexpert.com/mortgages/best-buys/

Top one there is 0.99% for 24 months from progressive through a broker only. 

Hi thanks for the link. I realised that I was only looking at 5 years fixed rate. So even on this link the best we can get is 2.4% (aside from the Northern Ireland only ones).

Not sure if 5 years fixed rate is a good one to go with in current climate. But then again no one can really predict anything…

As an FYI, if that 2.4% one is Halifax, it's also available as a 10 year fix.

Personally, I'd bite their arm off. Yes, maybe we will get some record lows of 1.4%, but it's much more likely to go the other way.

propertyhunter

Aren't the BOE predicting inflation hitting 11% this autumn. I doubt interest rates will start reducing within 2 years. 

Sarah1Mitty2

housebuyer143 said:

Sarah1Mitty2 said:

housebuyer143 said:

Sarah1Mitty2 said:

housebuyer143 said:

Sarah1Mitty2 said:

donutandbeer said:

Windofchange said:

donutandbeer said:

Hi, where did you find the deals that are below 2%? We are buying and thinking of getting a very small mortgage (10% LTV) but the lowest interest rate we can see on our portfolio on our mortgage advisor website is 2.45%. Two months ago it was 2.2% so a 0.2% increase in the last two months. We are now keen to buy with cash because of the interest rate… 

The MSE mortgage Best Buy comparison site:

https://www.moneysavingexpert.com/mortgages/best-buys/

Top one there is 0.99% for 24 months from progressive through a broker only. 

Hi thanks for the link. I realised that I was only looking at 5 years fixed rate. So even on this link the best we can get is 2.4% (aside from the Northern Ireland only ones).

Not sure if 5 years fixed rate is a good one to go with in current climate. But then again no one can really predict anything…

Why not, won`t that protect you from interest rate rises?

Yes, but also screw you if they go down? Every time I have fixed for 5yrs I have regretted it. 2 yrs or trackers now. 

The media are saying now that rates are going up and will keep going up?

No one can tell you that. The media know as much as the next person and cannot predict the future. 
Maybe we go into a recession and they need to reduce them again? The future is uncertain.

Possibly, but if you look at what HSBC for example are doing, they seem to be ignoring the BOE and increasing their rates even more.

There is a lot more to it than the base rate. A believe the cost of swaps is what is driving up the increases in rates at the moment. 

Banks also can only guess the future and base prices on that. It's not a science. I can tell you that by how frequently lenders are changing their rates, some twice a week! 

What are "swaps", or do you have a link that explains?

Sarah1Mitty2

https://www.thisismoney.co.uk/money/mortgageshome/article-11134241/Average-two-year-fixed-mortgage-rate-goes-4-time-nearly-decade.html