Interest rates going down???

mwa

Hi there,

As a person who's fixed rate mortgage with nationwide is up in September, I was really interested to hear that some analysts reckon the Bank of England interest rate is going to be cut when they meet next month.

If this is the case, does anyone have any idea when this will be reflected in the mortgage rates as I would be mightily annoyed if I fixed again 2 weeks before they went down again!!

Many thanks
Morwenna

payless

This is general - not just NatWide

Variable rates ( for new and existing customers) are usually changed within 30 days ( if not on same day)

Fixed rates ( for new buisness - or rates that people can swap onto) are not always affected by BofE changes, as often they include certin assumptions - ie most pundits say the current fixed rates are priced to include another 0.25% drop shortly- if not more. ( of course they could be wrong)

meanmachine_2

All we know is that int rates are still incredibly low today, so I would suggest fixing.

The reason rates have been so low for so long is because of cheap chinese exports. With China revaluing its currency this might push up inflation a bit over the next few years, so I would suggest that rates of around 4.5% are as low as you're going to get. But I could well be wrong.

Take a longer term view. Are rates likely to go up over a 25 year period to their historical average? I would think yes. If I was you I'd fix for at least 10 years. But it's a gamble either way.

We won't be going back to 3.5% though, not with US rates on the up.

TrickyTrotter_2

I'm in the same position with the same BS (Nationwide). Current base rate tracker up in Septemebr. They have already written to me twice asking if I want to change to another mortgage rather than just go on to the SVR. I like that, I have just walked away from every other BS/Bank, mainly because they haven't be interested in making me a new offer and keeping my business when previous products have expired.

I want the 3 yr fixed but I think i'll just wait until after next week's BoE meeting when I expect there will be a 0.25% drop in base rates. I know fixed rates change for slightly different reasons - money market rates, but we will see.


Anyone know if they will make me have a revaluation of my house and pay new legal fees? I know they will charge me an arrangement fee.

YorkshireBoy

TrickyTrotter wrote:

I think i'll just wait until after next week's BoE meeting ...

BOE website shows it taking place the week after, on 3rd/4th August.

TrickyTrotter wrote:

Anyone know if they will make me have a revaluation of my house and pay new legal fees? I know they will charge me an arrangement fee.

I've re-mortgaged several times with my lender (not Nationwide, but YBS) and I've never had to do anything other than pay the "product transfer fee" - and normally less than new customers would pay.

MarkyMarkD

YorkshireBoy wrote:

I've re-mortgaged several times with my lender (not Nationwide, but YBS) and I've never had to do anything other than pay the "product transfer fee" - and normally less than new customers would pay.

Just to be pedantic, that's not a re-mortgage but a product switch. Re-mortgaging means changing lenders.

YorkshireBoy

MarkyMarkD wrote:

Just to be pedantic, that's not a re-mortgage but a product switch. Re-mortgaging means changing lenders.

Thanks Marky, I knew that! I'm just asking myself why I wrote it (would insert an "embarrassed" smilie but don't know how!).

MarkyMarkD

like that - no worries! Just type ": o" without the quotes and the space.