Mortgage Deal ends 1st August - BOE next review is same day

Tonymc182

Hi All,
My mortgage deal ends on the 1st August, the same day the BoE review interest rates. Concerned if i do a deal now they will drop on the 1st August and i will miss out.

If i was to stay with the same supplier can I change same day if i am happy with the house valuation? Also do they change mortgage rates the same day (currently with RBS)?

Any advise greatly appreciated.
Ant

la531983

Mortgage providers will price in potential rate changes well in advance (you can see for yourself, the current BOE rate is 5.25, five year rates are currently available for under 4.5%), lenders arent going to suddenly cut the rates on offer the same day.

born_again

TBH, given todays announcement on rates. Especially given the 7 to 2 vote on staying the same. I would not hold out much hope on a change down next month.
Changes same day, would be unusual as lenders need time to check the figures before changing. As well as they will still be digesting just how the election result is going to effect them.

Hoenir

Tonymc182 said:

Hi All,
My mortgage deal ends on the 1st August, the same day the BoE review interest rates. Concerned if i do a deal now they will drop on the 1st August and i will miss out.

To guarantee to benefit you'd need a product with a direct correlation to BOE base rate. There's other factors in play when it comes to mortgage lenders pricing their rates. 

BikingBud

Tonymc182 said:

Hi All,
My mortgage deal ends on the 1st August, the same day the BoE review interest rates. Concerned if i do a deal now they will drop on the 1st August and i will miss out.

If i was to stay with the same supplier can I change same day if i am happy with the house valuation? Also do they change mortgage rates the same day (currently with RBS)?

Any advise greatly appreciated.
Ant

You have bought a house, via mortgage, and have enjoyed the benefits of that over a number of years?

When you took out that mortgage it is most likely you will have been stress tested and notified of the potential rates and costs at those rates.

Those costs should have been acceptable when you took out the mortgage. 

Accept that some increase has now materialised but reflect upon how much you have saved over the years due to continued low interest rates. 

Continue enjoying living in your home.

Or is that advice not suitable?

Tonymc182

BikingBud said:

Tonymc182 said:

Hi All,
My mortgage deal ends on the 1st August, the same day the BoE review interest rates. Concerned if i do a deal now they will drop on the 1st August and i will miss out.

If i was to stay with the same supplier can I change same day if i am happy with the house valuation? Also do they change mortgage rates the same day (currently with RBS)?

Any advise greatly appreciated.
Ant

You have bought a house, via mortgage, and have enjoyed the benefits of that over a number of years?

When you took out that mortgage it is most likely you will have been stress tested and notified of the potential rates and costs at those rates.

Those costs should have been acceptable when you took out the mortgage. 

Accept that some increase has now materialised but reflect upon how much you have saved over the years due to continued low interest rates. 

Continue enjoying living in your home.

Or is that advice not suitable?

no not suitable... others helped a lot more

RelievedSheff

Lenders will not change their rates the same day that any move is made by the BOE, be that upwards or downwards.

Any changes they expect are already priced into the rates on offer.

You will not be missing out on anything by accepting a new deal before the BOE announcement.

movilogo

If you want to leverage BOE's new rates, then you need to be on a tracker rate. Be aware that BOE can either lower or up the rates. Although at current climate it will be very unlikely to up the rate!

csswiift

BikingBud said:

Tonymc182 said:

Hi All,
My mortgage deal ends on the 1st August, the same day the BoE review interest rates. Concerned if i do a deal now they will drop on the 1st August and i will miss out.

If i was to stay with the same supplier can I change same day if i am happy with the house valuation? Also do they change mortgage rates the same day (currently with RBS)?

Any advise greatly appreciated.
Ant

You have bought a house, via mortgage, and have enjoyed the benefits of that over a number of years?

When you took out that mortgage it is most likely you will have been stress tested and notified of the potential rates and costs at those rates.

Those costs should have been acceptable when you took out the mortgage. 

Accept that some increase has now materialised but reflect upon how much you have saved over the years due to continued low interest rates. 

Continue enjoying living in your home.

Or is that advice not suitable?

Why such a confrontational reply? 

Strummer22

csswiift said:

BikingBud said:

Tonymc182 said:

Hi All,
My mortgage deal ends on the 1st August, the same day the BoE review interest rates. Concerned if i do a deal now they will drop on the 1st August and i will miss out.

If i was to stay with the same supplier can I change same day if i am happy with the house valuation? Also do they change mortgage rates the same day (currently with RBS)?

Any advise greatly appreciated.
Ant

You have bought a house, via mortgage, and have enjoyed the benefits of that over a number of years?

When you took out that mortgage it is most likely you will have been stress tested and notified of the potential rates and costs at those rates.

Those costs should have been acceptable when you took out the mortgage. 

Accept that some increase has now materialised but reflect upon how much you have saved over the years due to continued low interest rates. 

Continue enjoying living in your home.

Or is that advice not suitable?

Why such a confrontational reply? 

I second that question. This is the Money Saving Expert forum. Sure, you've been stress tested at a higher rate and should be able to afford a higher mortgage repayment, but this doesn't mean you should pay it just because you can! You should look for the cheapest mortgage deal available.

That said, previous posters are (mostly) correct; the available mortgage rates will not move much, if at all, following the BoE meeting. An exception may be if the markets don't expect a rate cut, and then the BoE does in fact cut the rate. A surprise cut like that would be expected to cause a bit of a drop in mortgage rates.