Mortgage Rates

MJR1984

Just wondering what people think will happen to the mortgages rates in the next few years? Do we think they will go down soon? 

DE_612183

either that or they will go up, or possibly stay the same - one of those three anyway.

I think a lot will depend on the budget at the end of October.

lincroft1710

If you look at mortgage rates historically, they've gone up, down. up, down etc. In 5 years time, who knows where they'll be.

mark55man

So a lot of people are forecasting cuts in interest rates over the next 18 months

However, it is clear that however that is done, there will be a need for significant government borrowing and that tends to put upward pressure on the long term yield meaning cuts may be slower than some want/are predicting.

My guess (as good as anyones) is that the short term rate will trend down for a couple of years, but the long term will prove stubborn - but there is no way we are going to return anywhere near 0% anytime soon

If you were wondering about a decision whether to fix for long (eg 5 years) or fixing for short and then hoping to lock in - I think that could be OK if the fees aren't great, but you wouldn't necessarily save a much as you might think. 

A 2-3 year loan then really target over payments so that you end up in a better LTV band is likely to provide a bigger discount, but even that won't be lot.   3 years can be a sweet spot in terms of gaining the impact of short term decreases without committing for too long

good luck but as your other posters have said its difficult to be sure, and if you are borderline on affordability, well that's not a good place to be