Rate predictions

gener8or

My 1.99% 5 year fixed with Halifax finishes 31 October. 6 months ago I got a re-mortgage offer with First Direct but higher at 2.29% 5yr fixed but with a £490 fee. I really wanted around 1% but had to have got that last year and ERC was about 8k.

Now the chancellor has u turned and energy has been price capped do we think interest rates will come back to .025 with 1% fixed?

I know fixed rates seem high compared to base but is it just temporary?

ACG

No.
Rates are not coming back down, they might edge down slightly but I cant see 0.25% coming back in my lifetime (im 37). 

Saint84

No chance. I think base rate will hover 2 pc plus in long term

GoonerByron

2.29% is a great 5 year fix.

Interest rates will probably never go back to 0.25% again. We’ve both missed the boat on that unfortunately!

gener8or

My friend fixed in November 2021 at 1.23% 5 year no fee.
Normally I get it wrong, like a 5 year fixed in 2008 at 6.09% with a 1k fee.

I think I'll just have to take the 5 year at 2.29%. 

Ibits4321

You'd be absolutely bonkers to turn it down. Have you not been listening to/reading the news? Inflation is through the roof and expected to remain so for at least a couple of years. I read an article that when inflation takes hold it lasts approx ten years. Interest rates will rise and likely remain so for years.

gener8or

My plan is to take the 2.29%, I paid the fee back in February because rates were starting to rise.  I suppose back in 2008 is on my mind.  Lock in and for 5 years and then we have 15 years of very low rates. Thanks all for your opinions. 

brownbagsFTB

I’m no expert but I’ve been reading a lot to try to educate myself on this. I think there’ll be a peak mid 2023 but by the end of the year it will slowly start to fall again. It probably won’t get below 2%. I reckon in a couple of years the average mortgage will be back down to 3-4.5%. I doubt it will stay stupidly high (6%+) for long 

gener8or

brownbagsFTB said:

I’m no expert but I’ve been reading a lot to try to educate myself on this. I think there’ll be a peak mid 2023 but by the end of the year it will slowly start to fall again. It probably won’t get below 2%. I reckon in a couple of years the average mortgage will be back down to 3-4.5%. I doubt it will stay stupidly high (6%+) for long 

Thanks for your views. I think its sensible to take the 2.29% for 5 years. If rates stay high its better not to overpay and stick into higher interest savings

[Deleted User]

I've just fixed at 4.08% and was pretty pleased with that, considering the current circumstances. I'd be jumping for joy with your rate! 5 year fixes are averaging at around 5.5% at the moment. 

HWBY

Deleted_User said:

I've just fixed at 4.08% and was pretty pleased with that, considering the current circumstances. I'd be jumping for joy with your rate! 5 year fixes are averaging at around 5.5% at the moment. 

With Halifax? We submitted our application for that rate today, fingers crossed!