Halifax remortgage rates have increased after base rate reduction

limefox

I am about to do an extension on my property which requires additional borrowing on my mortgage. 

I checked the rates last month and the offer showed that I could borrow the money over 5 years at 4.3%. 

Now that the base rate was reduced last week i have checked again this morning and the same amount of borrowing is now offered to me at 4.69%. 

I will need funds in place by February. Is it worth waiting another month to see if the Halifax rates catch up with the BoE rates? 

housebuyer143

Mortgage rates are not directly linked to base rate but more closely swap rates. I would apply now and then look to change the rate if it goes down before you require the funds.

Hoenir

limefox said:

I will need funds in place by February. Is it worth waiting another month to see if the Halifax rates catch up with the BoE rates? 

Base rate at 4.75% is above the the 4.69% mortgage rate that's currently on offer.  As the mortgage rate is still below. The likelihood of mortgage rates becoming much cheaper are remote. As you'd expect borrowing rates to actually sit above base rate. When they finally do. Normality will have returned. The cheap money era will be over. 

kingstreet

Swap rates have increased in the last few weeks. They had already factored-in a base rate reduction and are now reflecting economic/political uncertainty.