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Mortgage rates

Will mortgage rates come down as quickly as they have gone up if there is a significant u-turn on the mini budget? 

Comments

  • simon_or
    simon_or Posts: 890 Forumite
    500 Posts First Anniversary Name Dropper
    Who knows. Swap rates are rapidly heading down since the strong rumours of the corp tax U-turn and the chancellor getting sacked so if it stays that way for a week or so it should start filtering through to rates.
    However, you also hear of banks not wanting to be too competitive on rates because they can't handle too many applications so perhaps it won't be that quick.

  • Will mortgage rates come down as quickly as they have gone up if there is a significant u-turn on the mini budget? 
    Depends how the market reacts but probably not. A lot of damage has been caused.
  • Hanava22
    Hanava22 Posts: 11 Forumite
    First Anniversary First Post
    Hi all 

    has anyone experienced lender wanting  Government gateway document showing monthly earning for the last 3 years?

    I had one previously wanting 3 years but not showing monthly earnings over the past 3 years. Why would they want this?

    Thanks in advance 
  • Thibk you’ve posted in the wrong place. 
  • 400ixl
    400ixl Posts: 4,482 Forumite
    1,000 Posts Third Anniversary Name Dropper
    The budget has not caused the supply chain issues which have increased the prices in the shops which is one of the bigger causes of inflation and therefore making the BoE react by raising base inflation, which drives mortgage rates.
  • Problem is, the lenders are getting lots of buisness on the high rates... What incentive is there for them to bring them down? 
    Bit like petrol, if they all sit at roughly the same price point, then they all make loads of money. 
  • PK_London
    PK_London Posts: 106 Forumite
    Part of the Furniture 10 Posts Name Dropper Combo Breaker
    This is a global problem. In the US mortgage rates are 7%. UK is sure to follow. Even if swap rates lower, the BOE will raise rates by at least 0.5% on 3rd Nov so surely these will feed into mortgage rates. Come summer '23 base rates may be at 6% themselves. If we assume banks are kind and well meaning, we may assume most of these rises are already priced in. If we assume they're still terrified and risk averse, they may well add on 4% to whatever the base rate is. The BOE will emulate the Fed and raise rates to keep up. I dont see any relief for mortgage holders for quite a while despite who is in No 10. I think the mini budget was and still is a complete red herring and major distraction.
  • jj_43
    jj_43 Posts: 336 Forumite
    100 Posts First Anniversary Name Dropper
    Unlikely, the governments incompetence has caused a lot of additional damage to a new normal of higher interest rates and now the nations finances are being closely watched. Give it two years and I am sure by then inflation should be under more control while the country creeps out of recession.
  • 400ixl said:
    The budget has not caused the supply chain issues which have increased the prices in the shops which is one of the bigger causes of inflation and therefore making the BoE react by raising base inflation, which drives mortgage rates.
    With the greatest of respect, you don't understand how mortgage pricing works
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