Potential bank of england rate decrease...

simonkirkland

Hi all,-

I'm sure it's been mentioned before but the 'experts' are predicting that the BoE rate will go down this week when they have their review...

I have just had an offer accepted on a house and I'm doing the mortgage trawl... Should I wait till the review has happened before deciding or take action now and take the rates available to me?

Fixed rates are lower than variable as the minute which must mean the building societies are expecting it to fall.

But if they don't fall this month might they then put them up???

Thanks

Simon

meanmachine_2

Fixed rates have already been cut in expectation of a fall.

If the BoE doesn't cut this month - and some experts are predicting they won't - then that just makes a small cut more likely later in the year.

Personally I'd fix now, as there are massive inflationary pressures building in the economy, which could well filter through over the next 6-12 months.

Again, some "experts" are predicting rates will be back down to 3.5% by end of 2006, but just as many are of the opinion that the economy is on an inflationary path.

Remember, int rates right now are incredibly low historically and over the longer term are likely to go up not down.

Fairdo_2

As meanmachine said really. But also, my view is that people could hang on for ever waiting to hear if the "Experts" prophecy would get fulfilled and at some point people would then miss the boat.

Rates are very low relative to the peaks and troughs of the market, so I don't think there is potential to go too far wrong. If you miss the very bottom of the market by 0.25% would that be such a hardship????