BOE base rate remains the same.

homer_j_3

No changes.


http://news.bbc.co.uk/1/hi/business/7280836.stm

MortgageMamma

thought as much!

Dan_Collins_2

If inflation carries on could go up!

Ivana_B_Rich

Al_Mac wrote: »

Should have gone up. Pandering to the retailers and banks.

Totally agree. Well said :T

marvin

TBH I think the BOE rate means less these days than it used too with so much of mortgage lending now based on LIBOR.

immy

I hear some analysts saying the rate will be cut twice more before end of year.....so should i get a tracker mortgage (waiting for a good fix rate deal) or bite the bullet and go for a fix deal.

homer_j_3

maybe you should try and find a capped deal or go for a discounted deal?

lisyloo

Hello immy,

If a 2, 3, 5 or 10 year fixed deal is on offer then interest rate expectations are already factored in.
There is no reason to think that BOE cuts will result in lower fixed rates (if they are in line with expectations).
An adjustment to the long term future on interest rates could cause fixed deals to change as could any changes to the credit crunch or the economy in general.

There is also the possibility that the credit crunch could continue or get worse and fixed rates could increase.

FWIW I would say that you shoudl bite the bullet especially if it's costing you not to.
None of us can predict precisely but that's the whole point of a fix - you don't have to, you just get long term security.

homer_j_3

lisyloo wrote: »

Hello immy,

If a 2, 3, 5 or 10 year fixed deal is on offer then interest rate expectations are already factored in.

Not exactly true - it means the lender has secured a pot of money at a set rate for this period of time and has been priced to make a certain level of profit on it over this period of time.

There is no reason to think that BOE cuts will result in lower fixed rates (if they are in line with expectations).

spot on here. SWAP rates normally determine the pricing of fixed rates.

An adjustment to the long term future on interest rates could cause fixed deals to change as could any changes to the credit crunch or the economy in general.

There is also the possibility that the credit crunch could continue or get worse and fixed rates could increase.

FWIW I would say that you shoudl bite the bullet especially if it's costing you not to.
None of us can predict precisely but that's the whole point of a fix - you don't have to, you just get long term security.

The credit crunch will impact on the pricing of all types of mortgages. Tracker margins will increase too for example or higher fees will go in to the ones with smaller margins.

Treadmill

I'm hoping interest rates go up in future or inflation will eat into my savings, I think inflation will be 3% by years end.

free4440273

for Mervyn: :j:j:j