Mortgage rates

Newheight13

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

simon_or

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.

sancahojo

Newheight13 said:

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

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 

Newheight13

Thibk you’ve posted in the wrong place. 

400ixl

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.

housebuyer143

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

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

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.

Suitcasesparks

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