Will mortgage rates increase or stabilize/ should we make this house move?!

matt1983

mi-key said:

Sarah1Mitty2 said:

mi-key said:

Rates seem to have stabilised, so barring any great disasters, they will probably stay around the level they are for the next 5 years. Interest rates probably aren't going to rise by much, or drop back to what they were before for a good while, so a long term fix would be a good plan.

Speak to a broker and give them your figures and see how the affordability for borrowing works out

Very unlikely that this can be predicted with any degree of accuracy to be honest, but if the OP still has a house to sell they are jumping too many steps ahead at the moment anyway.

You can be fairly certain, as I said, unless there is some big disaster then they aren't going to raise interest rates much more than they are now, and lenders have already priced in a larger increase than we have had into their rates, so would be no reason for them to go up much more unless people are on trackers.

If someone can afford a  5 year fix at the rate it is now, it's highly unlikey in 5 years time when it ends interest rates are going to be lots higher than they are now.

Of course none of us have a crystal ball, but it is easy enough to minimise risks. 

What do you mean “no reason for them to go up much more unless people are on trackers”? 

mi-key

matt1983 said:

mi-key said:

Sarah1Mitty2 said:

mi-key said:

Rates seem to have stabilised, so barring any great disasters, they will probably stay around the level they are for the next 5 years. Interest rates probably aren't going to rise by much, or drop back to what they were before for a good while, so a long term fix would be a good plan.

Speak to a broker and give them your figures and see how the affordability for borrowing works out

Very unlikely that this can be predicted with any degree of accuracy to be honest, but if the OP still has a house to sell they are jumping too many steps ahead at the moment anyway.

You can be fairly certain, as I said, unless there is some big disaster then they aren't going to raise interest rates much more than they are now, and lenders have already priced in a larger increase than we have had into their rates, so would be no reason for them to go up much more unless people are on trackers.

If someone can afford a  5 year fix at the rate it is now, it's highly unlikey in 5 years time when it ends interest rates are going to be lots higher than they are now.

Of course none of us have a crystal ball, but it is easy enough to minimise risks. 

What do you mean “no reason for them to go up much more unless people are on trackers”? 

Trackers will track the base rate, so if that goes up, then so does the tracker cost. The lenders have already priced in a lot of their rate increases over the past few months, so a 0.5% raise in the rates today isn't going to necessarily mean rates will increase again for fixed rate deals.

Zerforax

If you are close to stretching yourself, maybe a fixed mortgage is better so you can budget?

We're obviously seeing people now worrying who were on ~1.50% deals and expiring with rates now around 4-4.5%