Post BOE November rate rise - movement in mainstream mortgage fixed rates

K_S

Quite a few large lenders have sent out broker notifications about drops in rates today (effective from tomorrow/Friday) covering new-business, remos, purchases, existing customers, resi and BTL.

Quite a few sub-3.5% low-fee low/no ERC discount products including a couple just below 3%, tracker margins being reduced, FTB 5yr fix rates approaching close to 5%, etc. Not huge drops, not uniform across all products/lender, and nowhere near the pre mini-budget rates yet, but overall a much better lending picture than it was 4 weeks ago.

The sourcing systems are still a bit inaccurate for some lenders (BOE rate increase not updated for example) but across the MSE best buys and Moneyfacts comparison you should be able to see all the rates once they are effective.

https://www.moneysavingexpert.com/mortgages/best-buys/
https://moneyfacts.co.uk/mortgages/

simon_or

Thanks for the update. What do you mean by tracker margins being reduced?

And if you don't mind me asking, are there any no-penalty discounted variable mortgages below 3%? I couldn't see any on the links. Thanks.

K_S

@simon_or

Tracker margins being reduced: This is what I meant


No-ERC discounts below 3%: As of Tuesday, there was a cracking Cambs discount which was low-fee, no-ERC and sub 3% for resi purchase and remo. If it hasn't been pulled already, I wouldn't expect it to be around for much longer though.

simon_or said:

Thanks for the update. What do you mean by tracker margins being reduced?

And if you don't mind me asking, are there any no-penalty discounted variable mortgages below 3%? I couldn't see any on the links. Thanks.

simon_or

Thanks! The 5 year +0.6% tracker and the penalty free discount look really good, especially now that Fed rate increase expectations are getting lower due to inflation trending downwards in the US.

snowqueen555

PK_London said:

US montage rates are already circa 7% with base rates and risks set in. I do think that's where the UK mortgage rates are heading. Inflation is still 10% so even a mortgage rate of 5% today is minus 5% in real terms.

Inflation was 0.2% below expected in their report yesterday, the markets are flying over there. Rates may have peaked over there, we shall see.

snowqueen555

I can see the 5.39% has gone down to 5.25%.

I'm wondering if the rates will decrease after the budget, if the government is shown to be increasing income and reducing costs would that reflect in lower rates?

simon_or

snowqueen555 said:

I can see the 5.39% gone down to 5.25%.

I'm wondering if the rates will decrease after the budget, if the government is shown to be increasing income and reducing costs would that reflect in lower rates?

Get your broker to switch to the lower rate, who knows what'll happen after 17 Nov.

It's only a small drop but if it's a long fix will save you lots of money.

Unless the budget upsets the status quo, I think mortgage rates will continue to fall (only slightly) until the new year.

Banks need to lend and with lower demand competition on rates will increase.

snowqueen555

simon_or said:

snowqueen555 said:

I can see the 5.39% gone down to 5.25%.

I'm wondering if the rates will decrease after the budget, if the government is shown to be increasing income and reducing costs would that reflect in lower rates?

Get your broker to switch to the lower rate, who knows what'll happen after 17 Nov.

It's only a small drop but if it's a long fix will save you lots of money.

Unless the budget upsets the status quo, I think mortgage rates will continue to fall (only slightly) until the new year.

Banks need to lend and with lower demand competition on rates will increase.

Fortunately the broker has said the rate can be changed if it goes lower.