Fixed rates could be repriced slightly higher (due small increase in swap rates)

MortgageGenie

I know there are a few of you holding off applying for fixed rates since the rate drop last Thursday. Just to let you know the swap rates have moved slightly higher, this could easily reverse, however if they remain at their current level we are likely to find the next batch of fixed rates are priced marginally higher.

Swaps Yesterday:
1 yr 4.57%
2 yrs 4.56%
3 yrs 4.61%
5 yrs 4.67%

This could just be a small blip and they could move back down.

payless

My thoughts are that the price of many of the current batch of shorter term fixed rates from ceratin lenders are priced at their levels to attract a larger market share/ keep processing centres utilised in this potentially quiet period on new purchase business

Fairdo_2

Agree with payless here, but a few Lenders are withdrawing their rates over the next week to make way for new rates. It will be interesting to see if a pattern emerges. However, Lenders do seem to be directly competing with eachother at a cost to their profit margins at the moment.

MortgageGenie

Sorry I can't help you I get them via email.

Unless the swaps rates come back down in the next few days, It's looking increasingly likely the reprices will be slightly higher as Portman have announced their 5 year fixed is going up by 0.14% to 4.59%. Other lenders will probably follow this move when current funds run out.

davepugh1981

Unless they decide to taek the margin hit in order to increase there volumes against the competition.

When I worked for Birmingam Midshires I had access to a Bloomberg terminal. I can't find anywhere either that gives access to swap rates for free, does anyone else know of a site where they are displaed?

MarkyMarkD

I think I agree with MG - fixed rate mortgages are more likely to go up than down in the near future. I certainly wouldn't hold off purchasing if a fix is what you want.

herbiesjp

A&L have just advised that due to higher swap rates they have got all their fixed rates on withdrawal watch i.e. they could go very soon.

MortgageGenie

I agree I think it will be very soon.

The new products from Accord Mortgages also come out higher today.

MortgageGenie

Looks like Hinckley and Rugby have decided to buy in some business then. I must admit I find it really surprising they've managed to price their 2 year deal that low. Wonder how long it'll be around.

MarkyMarkD

They probably purchased the swap a while back and have now realised they have a bargain on their hands.

meanmachine_2

I'm curious to know what the brokers on this site think. It really is bizarre - the MPC cuts its rate, and then two weeks later fixed rates are higher than they were before the rate cut.

Very odd.

Seems to me these big banks are as clueless about the economy as the rest of us.