Are we expecting BOE to remain at 4.75% on 8th February 2025?

Aberdeenangarse

Raised by 0.25% to 4.25%  as expected

wolvoman

I don't understand how the BBC quotes tracker mortgages going up by £24 a month while SVRs going up by £15 a month. Surely they will both go up by the same amount (25 basis points)?

fewcloudy

wolvoman said:

I don't understand how the BBC quotes tracker mortgages going up by £24 a month while SVRs going up by £15 a month. Surely they will both go up by the same amount (25 basis points)?

I think they are alluding to the fact that we can totally predict that Trackers WILL go up, by 0.25%, as that is what they do; track the base rate.

But SVRs can be a different rate, depends on the bank, they can please themselves what their SVR is.
So no, they do not necessarily go up by the same amount.

fewcloudy

lojo1000 said:

If you wanted low interest rates and enjoyed the upside for many years, I hope you prepare for the downside.

For many of us who enjoyed the upside since 2008, there is no downside in the way you are thinking.
The mortgage has gone, due to massive overpayments made possible by over a decade of near zero interest rate.
Those same overpayments are now just called payments, and are diverted into various savings, pension pots, car/holidays etc. Plus the savings themselves are now offering the highest interest rates seen in over a decade.

I would suggest those most affected by a 'downside' are unfortunately those least likely to have benefited from very low interest rates for many years. i.e. first time buyers or younger borrowers.

wolvoman

fewcloudy said:

wolvoman said:

I don't understand how the BBC quotes tracker mortgages going up by £24 a month while SVRs going up by £15 a month. Surely they will both go up by the same amount (25 basis points)?

I think they are alluding to the fact that we can totally predict that Trackers WILL go up, by 0.25%, as that is what they do; track the base rate.

But SVRs can be a different rate, depends on the bank, they can please themselves what their SVR is.
So no, they do not necessarily go up by the same amount.

SVRs not following the same rise as bank base happens about 1% of the time surely.

Strummer22

wolvoman said:

fewcloudy said:

wolvoman said:

I don't understand how the BBC quotes tracker mortgages going up by £24 a month while SVRs going up by £15 a month. Surely they will both go up by the same amount (25 basis points)?

I think they are alluding to the fact that we can totally predict that Trackers WILL go up, by 0.25%, as that is what they do; track the base rate.

But SVRs can be a different rate, depends on the bank, they can please themselves what their SVR is.
So no, they do not necessarily go up by the same amount.

SVRs not following the same rise as bank base happens about 1% of the time surely.

I'm on a SVR (technically a discounted rate but the discount to the SVR is a fixed percentage) and it hasn't really followed the base rate. It's gone up by less than, and at different times to, the base rate increases over the last year.

But on the point on the BBC figures, they are completely meaningless. I have not even been able to find the figures that underpin these statements - what counts as 'typical'? In that respect they're even more useless than saying the EPC is £2,500 for a 'typical' household. 

mi-key

At least a 0.25% rise shouldnt really make things any more damaging for most people than staying at 4% would have been. For those on trackers the increase is very small ( unless you  have a MASSIVE mortgage, in which case you probably don't care about interest rates as much ).

Hopefully this will be the peak now and they can cut them again in a few months if inflation eases. 

mi-key

It also wouldn't surprise me if lenders mainly absorb this rise and don't increase their lending rates by much if anything for fixed rates

jm475

What do you think the interest rise and longer term outlook will do for new fixed rate mortgage products? Do you think banks have anticipated this and will offer lower interest rates on new products or will new products have higher interest rates? I know it's a crystal ball thing....just keen to hear your thoughts!

Due to renew before June. Currently seeing 4.63 with Santander. L&C will be looking for other products from tomorrow.

Thanks!!!  

dougson

jm475 said:

What do you think the interest rise and longer term outlook will do for new fixed rate mortgage products? Do you think banks have anticipated this and will offer lower interest rates on new products or will new products have higher interest rates? I know it's a crystal ball thing....just keen to hear your thoughts!

Due to renew before June. Currently seeing 4.63 with Santander. L&C will be looking for other products from tomorrow.

Thanks!!!  

My suspicion is that there won't be much change. Expectation was to hit 4.25 at some point, only thing likely to change that is if a further increase is expected and by being at 4.25 the jump to 4.5 is more likely than it was when we were at 4.