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

MobileSaver

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. 

The debt would be significantly lower at the end of a ten year fix and your home is almost certainly going to be worth more than you paid for it in ten years time too. Win-win.

Hoenir

MobileSaver said:

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. 

The debt would be significantly lower at the end of a ten year fix and your home is almost certainly going to be worth more than you paid for it in ten years time too. Win-win.

More expensive house. Higher running costs. Money money. 

ReadySteadyPop

MobileSaver said:

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?

 It seems you think a large monthly mortgage bill is the cure for many ills, recent sales volumes indicate that large numbers of people are not following your advice though. How many people a month buy a home in the UK do you think?

BarelySentientAI

ReadySteadyPop said:

MobileSaver said:

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?

 It seems you think a large monthly mortgage bill is the cure for many ills, recent sales volumes indicate that large numbers of people are not following your advice though. How many people a month buy a home in the UK do you think?

But I already have a house.

You're suggesting that I sell it to avoid "a large monthly mortgage bill", start paying someone else's mortgage (which is somehow going to be smaller?), and that's better?

ReadySteadyPop

BarelySentientAI said:

ReadySteadyPop said:

MobileSaver said:

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?

 It seems you think a large monthly mortgage bill is the cure for many ills, recent sales volumes indicate that large numbers of people are not following your advice though. How many people a month buy a home in the UK do you think?

But I already have a house.

You're suggesting that I sell it to avoid "a large monthly mortgage bill", start paying someone else's mortgage (which is somehow going to be smaller?), and that's better?

Sales volumes don`t lie, my comment is about the overall market not your personal situation, people are obviously not rushing to borrow money now for property and they are obviously living somewhere in the meantime.

ReadySteadyPop

https://www.msn.com/en-us/money/realestate/santander-raises-mortgage-rates-for-second-time-in-four-days/ar-AA1o1J2T

smipsy

If banks are now rushing to raise rates, then clearly BoE is not going to cut rates this month

Hoenir

smipsy said:

If banks are now rushing to raise rates, then clearly BoE is not going to cut rates this month

There's been no recent indications the BOE ever would. The increases in base rate from 18 months are only just filtering through.  Long road remains ahead. 

Baldeagle095

In the interim we are faced with lower house prices and higher mortgage costs. 
Some would argue that this is progress?

ReadySteadyPop

Baldeagle095 said:

In the interim we are faced with lower house prices and higher mortgage costs. 
Some would argue that this is progress?

The less debt you start off with the better, but if rates are staying at these levels or higher prices will go much lower.