Average mortgage rate for two-year fixed deal edges closer to 6%

Aberdeenangarse

The average rate on a new two-year fixed mortgage has edged closer to the 6% threshold, as Nationwide became the latest big lender to push through a significant increase in the cost of its deals.

Borrowers are braced for more pain, with the Bank of England expected to raise rates for the 13th meeting in a row next week. The Bank’s former governor Mark Carney has predicted interest rates would remain high “for the foreseeable future”.

Moneyfacts, the financial data provider, said the average rate on a new fixed-rate deal lasting for two years had nudged up to 5.92% – from 5.9% on Wednesday. Meanwhile, the typical rate on a new five-year fix has crept up to 5.56%, from 5.54% 24 hours earlier.

https://www.theguardian.com/money/2023/jun/15/average-mortgage-rate-two-year-fixed-nationwide-bank-of-england-interest-rate-rise-borrowers

Sarah1Mitty2

I think people need to be prepared for it to go higher, if you already have mortgage debt it is time to start or prepare for over-payments when your fix ends, and if you don`t yet have mortgage debt this is not the time to be getting any.

se2020

Doesn't seem to be putting anyone off buying yet.
We have put 5 offers in on houses during the last 3 months.  3 of those were for the full asking price. 
We have been outbid on every one!

smipsy

se2020 said:

Doesn't seem to be putting anyone off buying yet.
We have put 5 offers in on houses during the last 3 months.  3 of those were for the full asking price. 
We have been outbid on every one!

Doesn't necessarily mean much. I had to go through the same drama several months ago, when rates were a lot better than now and a bunch of those houses I lost on are back now...

Two of which came back to me directly, one of which I live in now, so you just never know

simon_or

se2020 said:

Doesn't seem to be putting anyone off buying yet.
We have put 5 offers in on houses during the last 3 months.  3 of those were for the full asking price. 
We have been outbid on every one!

Yeah I see that in my NW town as well. The ready to move in smaller FTB properties like 2 bed houses that aren't priced over-optimistically fly off the shelves. The ones that stick around longer or have transactions falling through are mostly the higher value big houses and flats.

Ultimately, people who need to buy and can get a mortgage will buy what lenders will afford them. And eventually house prices will adjust somewhat to that reality. Life will go on.

se2020

We are first time buyers but not really looking at the smaller ready to move property.
We are capped at 450k by the Lisa.

Been outbid on everything we have offered on over the last year. Though it might be slowing down by now but no signs of it.
Same thing, have a viewing, get told that viewing have been crazy.and they have had loads of offers etc.. etc.. don't believe the agent for one minute,  submit an offer for the full asking price, phone call 2 days later, sorry, sold to a higher bidder.

Agents basically said, view properties on the market for 400-425 and offer 450.
Can't see myself doing that but the problem is, I could afford to do that so might just end up doing it!

I know it's supposed to be slowing down/dropping but I wonder just how many people like me there are that will keep the prices pushed up? And for how long?

se2020

smipsy said:

se2020 said:

Doesn't seem to be putting anyone off buying yet.
We have put 5 offers in on houses during the last 3 months.  3 of those were for the full asking price. 
We have been outbid on every one!

Doesn't necessarily mean much. I had to go through the same drama several months ago, when rates were a lot better than now and a bunch of those houses I lost on are back now...

Two of which came back to me directly, one of which I live in now, so you just never know

It might happen!
Fingers crossed, there are 2 of them that I drive past regularly and have no sings of activity yet.
I've seen people move into at least 2 of them and another 2 have been split down into smaller lots and resold or had 2nd houses built in the garden.