Shall I wait until rate drop?

madhusudhan

I’m close to completing a mortgage deal at 4.79% fixed for two years on 260k from Woolwich. It may take couple of weeks from now to the exchange of contracts stuff. I’m thinking of delaying the application until first/second week of August when BoE may reduce the rates so that the lender may do so too.

Do you think it is sensible to do so? Any advise is highly appreciated.

Advance thanks
/M

CRUISEMAN

4.79% already looks expensive. The Skipton BS launched a two-year deal today priced at 4.29% with a £399 completion fee and daily interest charging. On a £260k interest only mortgage that would save £108 per month compared to the Woolwich deal!

Normally the money markets price in reductions in the base rate and I suspect that we may not see any sudden movements if the base rate falls as expected in August.