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Bank of England MPC meeting November 3rd 2022 - what are your predictions and how are you preparing
in Mortgages & endowments
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The IMF have said the Truss has introduced a risk premium to the markets, politics is still in chaos, the banks are going to want to maintain that margin for some time imho so the mortgage rates will rise as well. Just my thoughts fwiw
I think the next week will make a difference as it depends who gets in now as PM, how the pound and the markets respond to Truss resigning etc... It is possible the BoE won't need to increase as much as they were planning
Realistically, they should be doing a minimum of 1%...
But I know nothing and there are a lot of binary uncertainties ahead (e.g. is Ukraine headed for peace? stalemate? or nuke?) the answer to which will dramatically change the global picture.
Once the markets slow and they are short of business you might see them bringing down the rates to tempt people use them. At the moment, no one needs to be competitive as people are falling over themselves to fix at these crazy prices.
I applied with Skipton in March and spoke to an advisor the next day and applied. Offer in 24 hours, answered the phone in two rings. I called them last week, waited 20 mins to be answered and it was a three week wait to speak to someone. They are not desperate to get more business that's for sure.
We still seem to be in a world where mortgage rates are in Autumn 2022 territory whereas property prices are still in Summer 2022 territory. I think even with a few more base rate rises and mortgage rates nudging up a bit. Being a tortoise over a hare may work out if in a few months time property prices are lower for new buyers.
In my industry I am seeing massive wage inflation taking place and little to no sign of a recession. If this does feed through into the wider economy we may yet end up in a scenario where despite higher rates, property property affordability may be improved in a few months time over today.