Interest rates drop looks like a sure thing

bingobango_3

http://uk.biz.yahoo.com/050803/323/forvd.html

:j

river_kwai

Most mortgage lenders have already factored this into their new rates.

bingobango_3

river_kwai wrote:

Most mortgage lenders have already factored this into their new rates.

such as nationwide i guess? don't think they'll be lowering it then from 4.39 on the fixed 2 years?

KTF

bingobango wrote:

such as nationwide i guess? don't think they'll be lowering it then from 4.39 on the fixed 2 years?

I would be suprised if they did but you never know. As the previous poster said, most of the lowest fixed rates that are available now have already taken into account a drop in interest rates which is why they are can be had from as low as 4.15% (West Brom).

Assuming the rate drops 0.25% then that will put trackers closer to some fixed rates. For example the Nationwide tracker will be 4.49% (BoE -0.01%) v 4.39% for their fixed.

Its then up to you to decide if they will drop the rates again or jump on the fixed rate whilst its there.

bingobango_3

KTF wrote:

I would be suprised if they did but you never know. As the previous poster said, most of the lowest fixed rates that are available now have already taken into account a drop in interest rates which is why they are can be had from as low as 4.15% (West Brom).

Assuming the rate drops 0.25% then that will put trackers closer to some fixed rates. For example the Nationwide tracker will be 4.49% (BoE -0.01%) v 4.39% for their fixed.

Its then up to you to decide if they will drop the rates again or jump on the fixed rate whilst its there.

4.39 is pretty good in my eyes anyhow.

meanmachine_2

Looks like us savers will have to bail out the borrowers again.

What a joke.

More people to crawl on their hands and knees and seek help from the debt free wannabes.

:rolleyes:

Mad101daN

Any idea where you can get predictions for the longer term, thoughts for the next 1-3 yrs.

May help me to decide if fixed or discount is the way to go.

Thx

Dan

Having read that article it does look like the next to moves in interest will be downwards.

meanmachine_2

No clue mate.

Six months ago experts *ahem* were predicting rates would be 5.5% by now. Then the economy went tits up rather quicker than expected.

I'd suggest, that with US rates only going up, ours won't be going down much more. But who knows?

We could be back to 5% in 12 months' time, or down to 4%. Personally I'd fix for 2-3 years.

Andy_Spoo_2

I've just done a Mortgage Illustration at 'Nationwide' again, after doing one about a week ago, for a fixed mortgage, and all the interest rates seem to have gone up!!

What's going on??

Andy

clive_2

dont agree with you meanmachine .you havent borrowed at all have you?

Woby_Tide

Andy_Spoo wrote:

I've just done a Mortgage Illustration at 'Nationwide' again, after doing one about a week ago, for a fixed mortgage, and all the interest rates seem to have gone up!!

What's going on??

Andy

Look pretty similar to the ones they have had for last few weeks since they last altered their rates. You didn't look at the fixes which had no reservation fees which have a slightly higher rate than the fixeds with a reservation fee