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

Hoenir

sunnyvintage said:

Thanks, let see what others think
The reason I am asking is : I have been following the rates since quite a long and have read a lot. Hope/expectations is that BOE rates may fall to 3 - 3.5% in the next 2 years and remain stable. And lenders rate will usually be higher than that..hence does it indicate that even after 2 years average lender rates will be sort of 3.5%  - 4%? ( provided BOE rate is in the range of 3% - 3.5%)

Over time would be no great surprise for mortgage rates to again be above BOE base rate. Unwinding the QE era is going to take some years not months. 

ReadySteadyPop

Hoenir said:

sunnyvintage said:

Thanks, let see what others think
The reason I am asking is : I have been following the rates since quite a long and have read a lot. Hope/expectations is that BOE rates may fall to 3 - 3.5% in the next 2 years and remain stable. And lenders rate will usually be higher than that..hence does it indicate that even after 2 years average lender rates will be sort of 3.5%  - 4%? ( provided BOE rate is in the range of 3% - 3.5%)

Over time would be no great surprise for mortgage rates to again be above BOE base rate. Unwinding the QE era is going to take some years not months. 

Yes, people should prepare for mortgage rates at 7 or 8% and budget accordingly, of course mortgage rates could go much higher than this, and have done so in the past.

MobileSaver

ReadySteadyPop said:

Hoenir said:

sunnyvintage said:

Thanks, let see what others think
The reason I am asking is : I have been following the rates since quite a long and have read a lot. Hope/expectations is that BOE rates may fall to 3 - 3.5% in the next 2 years and remain stable. And lenders rate will usually be higher than that..hence does it indicate that even after 2 years average lender rates will be sort of 3.5%  - 4%? ( provided BOE rate is in the range of 3% - 3.5%)

Over time would be no great surprise for mortgage rates to again be above BOE base rate. Unwinding the QE era is going to take some years not months. 

Yes, people should prepare for mortgage rates at 7 or 8% and budget accordingly, of course mortgage rates could go much higher than this, and have done so in the past.

If that's what you think is going to happen then the sensible thing to do is take out a 10 year fixed mortgage.

Available today from as low as 4.79%... so load up on huge debt, live in the house of your dreams and party like it's 1999 safe in the knowledge your mortgage payments won't increase for at least a decade.

BarelySentientAI

MobileSaver said:

ReadySteadyPop said:

Hoenir said:

sunnyvintage said:

Thanks, let see what others think
The reason I am asking is : I have been following the rates since quite a long and have read a lot. Hope/expectations is that BOE rates may fall to 3 - 3.5% in the next 2 years and remain stable. And lenders rate will usually be higher than that..hence does it indicate that even after 2 years average lender rates will be sort of 3.5%  - 4%? ( provided BOE rate is in the range of 3% - 3.5%)

Over time would be no great surprise for mortgage rates to again be above BOE base rate. Unwinding the QE era is going to take some years not months. 

Yes, people should prepare for mortgage rates at 7 or 8% and budget accordingly, of course mortgage rates could go much higher than this, and have done so in the past.

If that's what you think is going to happen then the sensible thing to do is take out a 10 year fixed mortgage.

Available today from as low as 4.79%... so load up on huge debt, live in the house of your dreams and party like it's 1999 safe in the knowledge your mortgage payments won't increase for at least a decade.

If my mortgage was up for renewal at the moment, I'd be seriously considering that.

4.79% is not, in the grand scheme of things, a particularly high rate to lock in for the remaining term.

sevenhills

MobileSaver said:

If that's what you think is going to happen then the sensible thing to do is take out a 10 year fixed mortgage.

Available today from as low as 4.79%... so load up on huge debt, live in the house of your dreams and party like it's 1999 safe in the knowledge your mortgage payments won't increase for at least a decade.

All the sensible people got 10-year fixes 5+ years ago, but it's still an option if you need a guaranteed low rate.

ReadySteadyPop

MobileSaver said:

ReadySteadyPop said:

Hoenir said:

sunnyvintage said:

Thanks, let see what others think
The reason I am asking is : I have been following the rates since quite a long and have read a lot. Hope/expectations is that BOE rates may fall to 3 - 3.5% in the next 2 years and remain stable. And lenders rate will usually be higher than that..hence does it indicate that even after 2 years average lender rates will be sort of 3.5%  - 4%? ( provided BOE rate is in the range of 3% - 3.5%)

Over time would be no great surprise for mortgage rates to again be above BOE base rate. Unwinding the QE era is going to take some years not months. 

Yes, people should prepare for mortgage rates at 7 or 8% and budget accordingly, of course mortgage rates could go much higher than this, and have done so in the past.

If that's what you think is going to happen then the sensible thing to do is take out a 10 year fixed mortgage.

Available today from as low as 4.79%... so load up on huge debt, live in the house of your dreams and party like it's 1999 safe in the knowledge your mortgage payments won't increase for at least a decade.

That doesn`t make sense, the "huge debt" remains as the asset it is secured against falls in value when rates go higher, best bet is to just sit back and watch it all unravel in my opinion.

Hoenir

MobileSaver said:

ReadySteadyPop said:

Hoenir said:

sunnyvintage said:

Thanks, let see what others think
The reason I am asking is : I have been following the rates since quite a long and have read a lot. Hope/expectations is that BOE rates may fall to 3 - 3.5% in the next 2 years and remain stable. And lenders rate will usually be higher than that..hence does it indicate that even after 2 years average lender rates will be sort of 3.5%  - 4%? ( provided BOE rate is in the range of 3% - 3.5%)

Over time would be no great surprise for mortgage rates to again be above BOE base rate. Unwinding the QE era is going to take some years not months. 

Yes, people should prepare for mortgage rates at 7 or 8% and budget accordingly, of course mortgage rates could go much higher than this, and have done so in the past.

If that's what you think is going to happen then the sensible thing to do is take out a 10 year fixed mortgage.

Available today from as low as 4.79%... so load up on huge debt, live in the house of your dreams and party like it's 1999 safe in the knowledge your mortgage payments won't increase for at least a decade.

The debt itself still has to be repaid. After the party has finished there's still the hangover that has to be endured. 

ReadySteadyPop

Hoenir said:

MobileSaver said:

ReadySteadyPop said:

Hoenir said:

sunnyvintage said:

Thanks, let see what others think
The reason I am asking is : I have been following the rates since quite a long and have read a lot. Hope/expectations is that BOE rates may fall to 3 - 3.5% in the next 2 years and remain stable. And lenders rate will usually be higher than that..hence does it indicate that even after 2 years average lender rates will be sort of 3.5%  - 4%? ( provided BOE rate is in the range of 3% - 3.5%)

Over time would be no great surprise for mortgage rates to again be above BOE base rate. Unwinding the QE era is going to take some years not months. 

Yes, people should prepare for mortgage rates at 7 or 8% and budget accordingly, of course mortgage rates could go much higher than this, and have done so in the past.

If that's what you think is going to happen then the sensible thing to do is take out a 10 year fixed mortgage.

Available today from as low as 4.79%... so load up on huge debt, live in the house of your dreams and party like it's 1999 safe in the knowledge your mortgage payments won't increase for at least a decade.

The debt itself still has to be repaid. After the party has finished there's still the hangover that has to be endured. 

As more and more people are starting to realise as their fix ends, dreadful mess that could all have been avoided.

ReadySteadyPop

FED hike surely on the cards now, yields are going up in a straight line?

MobileSaver

ReadySteadyPop said:

MobileSaver said:

ReadySteadyPop said:

Hoenir said:

sunnyvintage said:

Thanks, let see what others think
The reason I am asking is : I have been following the rates since quite a long and have read a lot. Hope/expectations is that BOE rates may fall to 3 - 3.5% in the next 2 years and remain stable. And lenders rate will usually be higher than that..hence does it indicate that even after 2 years average lender rates will be sort of 3.5%  - 4%? ( provided BOE rate is in the range of 3% - 3.5%)

Over time would be no great surprise for mortgage rates to again be above BOE base rate. Unwinding the QE era is going to take some years not months. 

Yes, people should prepare for mortgage rates at 7 or 8% and budget accordingly, of course mortgage rates could go much higher than this, and have done so in the past.

If that's what you think is going to happen then the sensible thing to do is take out a 10 year fixed mortgage.

Available today from as low as 4.79%... so load up on huge debt, live in the house of your dreams and party like it's 1999 safe in the knowledge your mortgage payments won't increase for at least a decade.

best bet is to just sit back and watch it all unravel in my opinion.

Sit back and live where for the next 10 years? 

Carry on paying your landlord's mortgage instead of your own for another ten years? Stay in a house that's too small for your expanding family for another 10 years? Stay in a town with no job prospects for another ten years?