Mortgage rates to hit 6.25%

gadget88

I seen this in tomorrow’s Telegraph. Was talk of lower rates but seems they may rise. Any thoughts on this? Seems quite high property here is taking ages to sell I wonder if this will be a mini budget rerun when the rates keep rising? I decided against taking out a larger mortgage for a new house this summer due to the market. Seems a side step or cheaper mortgage may appeal to more. Anybody here put off selling due to this? I’ve been looking at home improvements instead and the high rates may suit savers. 

Hoenir

In what context would mortgage interest rates hit 6.25% ?   

Emmia

Hoenir said:

In what context would mortgage interest rates hit 6.25% ?   

More govt. borrowing pushes up interest rates for mortgage holders is the premise. It feels like yet another negative scaremongering article from the Torygraph.

I've recently cancelled my subscription as I'm sick and tired of the negativity from that paper 

PropertyGuru_Wannabe

Telegraph...  If you believe them, you will believe anything.  

LozzaCarr

Packages being released by lenders for sub 5% currently in order to get money moving.

ReadySteadyPop

Hoenir said:

In what context would mortgage interest rates hit 6.25% ?   

Middle East escalation, Bond market taking a dim view of the budget (does not really bear thinking about the nonsense they are going to try to cobble together) U.S Dockers strike back on, Japan raises interest rates again, escalated attacks on shipping lanes, another "hot" jobs report from the U.S meaning bets for rate cuts disappear, no more waves of cheap goods from China, "credit crunch" due to all or some of the above.......etc.etc.

Hoenir

Nothing substantive then. Just speculation. Serious market commentaries can be found if one looks hard enough. . 

poppy10_2

Telegraph are rabidly anti the current government so are running a lot of scare stories.

If the people who are paid to know about these things really thought mortgage rates would hit 6.25%, then you wouldn't be able to find five-year fixes at 3.5%

ReadySteadyPop

https://www.mpamag.com/uk/news/general/major-lender-raises-interest-rates-for-new-and-existing-customers/508901

RelievedSheff

ReadySteadyPop said:

https://www.mpamag.com/uk/news/general/major-lender-raises-interest-rates-for-new-and-existing-customers/508901

One lender raising rates slightly is hardly a firm basis for claiming that interest rates are going to rise to over 6%!!

It could simply be that they are wanting to reduce demand for their products if they feel they are becoming over subscribed.

ReadySteadyPop

RelievedSheff said:

ReadySteadyPop said:

https://www.mpamag.com/uk/news/general/major-lender-raises-interest-rates-for-new-and-existing-customers/508901

One lender raising rates slightly is hardly a firm basis for claiming that interest rates are going to rise to over 6%!!

It could simply be that they are wanting to reduce demand for their products if they feel they are becoming over subscribed.

That does not chime with what I"m hearing about sales falling through and lack of viewings being a problem for lots of people now, more likely they have an eye on global events and the potential bond market reaction.