"Bank of England To Cut Interest Rate by Up to 2%"

chappers

Would have to agree with the poster who said inflation becomes secondary in times of recession.
Personally I think we may see a series of small drops over the next year to help bolster the stagnating general economy, but think they will have little or no effect on mortgage rates, as can be seen in the LIBOR rates the money is not there for the banks to borrow they just as we should be are tightening their belts.
New tracker rates are rising to take account of falling existing trackers and fixed rates are rising due to the borrowing costs the lenders are themselves having to pay.
With medium and long term LIBOR still rising I can't see mortgage rates going down any time soon.

As has always been the case those who are close to the limits of their balance sheets with high LTVs should probably look to fix their mortgages, those with a bit more leeway can take a bit of a punt on rates with the option of baling out if things look to be going to far in the wrong direction.
Although swapping and changing your mortgage all the time rarely results in large savings.
We paniced a bit when rates started to rise last time, mainly due to me expanding my business, and fixed our mortgage for 2 years, we did ok out of it as the next rate change after we switched back to a tracker was down and the last one in our fixed period had been up.However I wish we had stuck to our original lifetime tracker as it was such a good deal and we would be really benefiting from it again now and having taken the fees for both our mortgage changes into consideration I doubt there would have been much in it with regards to how much it has cost us over the last 10 years.

In my opinion we are on the brink of some very unstable times, how long these times will last is anyones guess and when high level, well respected economists can't even agree what hope do us mere mortals have.

dunstonh

Im not a mortgage adviser so it doesnt matter what I say on mortgages However, I would personally prefer a five year fix to a tracker. Once the credit crunch is resolved sufficiently there is only one way the interest rates are going and thats up. They would be about 2% higher now if it wasnt for the credit crunch.

minimike2

maveli wrote: »

Glad to see atleast one mortgage adviser on a tracker rate when most of them on this forum recommending a 5 year fixed

Apart from I took out my tracker before the credit crunch at BBR -0.31%...

Find me a deal like that now....

Im doing a mix of deals at the moment....yeah im doign some trackers and offsets, just as much as im doing some five year fixes...some people still want 2 year fixes..........its what is right for the INDIVIDUAL, not a group as a whole. That said, I am finding 5 year fixes are becoming more popular as peoples perceptions change. The fact that im on a tracker is down to the fact it suited me best!

khowe

The LIBOR is down from 6.0013 yesterday to 5.9813 today