Fixed Rates will they decrease more?

PinkFairyDust2

Hi. Do you think fixed rates will drop further? I am buying a house but no where near ready to complete, my current offer is 5.24% but notice rates dropped to 4.59%. Is it worth reapplying to new rate or waiting if it is likely drop further. 

dunstonh

You cannot predict the unpredictable.   However, the general path that fixed rates take is that they will start falling before BoE interest rates start to fall.     When is always the unknown.    Rates are considered to be too high for the current expected path.  

ACG

I think they might, but not massively. With the expectation of where the base rate will hit next year and where they are now, there is not much room for them to come down.

But who knows, I am rarely right. or even remotely close. 

superstylin

I'm banking on them reducing. I have an offer for a 5 yr fix at 5.14%. It's now dropped to 4.44%. my fix doesn't end until May. I think the only thing that would cause them to increase is another occurrence like the mini budget, but I think Sunak and Hunt have the confidence of the market. 

gih

Nothing to lose in phoning up each time they drop to get the current best rate.  Our initial offer back in October from Nationwide was 5.69% (for a 5 year fix). Since then the rate has gone to 5.49%, 5.24% (we phoned last month and changed to this) and now 4.99%.  What we've decided to do though, rather than phone up every time they drop, is just go onto a fee-free tracker (with no ERC), with a view of then doing a switch sometime Feb/Mar/Apr to a fix. With Nationwide, the rates for switchers are generally lower then the rates for home movers anyway (4.59% vs 4.99% for the 5 year fix we're looking at), so I reckon even if fixed rates go up, the rate we'd get as switchers in March will probably be no worse than the rate we'd get now as home movers anyway.  Can't see us getting a rate much below 4.5% anyway, but who knows.

PinkFairyDust2

Thanks. I am in the process of a remortgage but no where near ready to complete, only thing is each new mortgage offer costs a bit more for solictor to review it. I might lock in at 4.59 as like you say may not reduce much more but option is there to re lock in if does go down 

snowqueen555

Each time it has gone down by broker has applied for me, It has gone down 3 times so far for me, from 5.39% to 4.84%.