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Original poster

Mortgages- so you know

36 replies

Tempname1234567 · 20/12/2025 16:51

Friendly reminder than unless you’re on a variable rate tied to BBR mortgage rates have nothing to do with the Bank of England base rate.

the rate reducing isn’t the magic bullet so don’t think you can game the market. You should do what’s right for you right now.

posting because I see a lot of misinformation spread on social media right now on the base rate being the lowest in X years

OP posts:
Original poster
Tempname1234567 · 20/12/2025 17:11

LighthouseLED · 20/12/2025 17:02

Fixed mortgage rates have nothing to do with the base rate

That’s not quite true. There isn’t a direct correlation between them, but changes to the base rate certainly influence mortgage rates for most lenders.

Also this is my job, so I can’t say with authority you’re mistaken

OP posts:
Original poster
Tempname1234567 · 20/12/2025 17:09

Fifiesta · 20/12/2025 17:03

Surely if you are hoping to move, the extended part of the mortgage will potentially be obtained at a lower percentage point than the mortgage taken a few years ago when they were at their highest and you took a set rate mortgage?
If I have failed to understand this correctly, I’ll join the other ignoramus’s …

potentially but it’s nothing to do with the base rate. Lenders this year have been more generous passing on swap reductions, last year they were all pretty greedy as swaps were very low sep 24

OP posts:
Original poster
Tempname1234567 · 20/12/2025 17:07

LighthouseLED · 20/12/2025 17:02

Fixed mortgage rates have nothing to do with the base rate

That’s not quite true. There isn’t a direct correlation between them, but changes to the base rate certainly influence mortgage rates for most lenders.

No, the banks cost of funds is based on overnight Sonia. At the moment there is a mirroring BUT they can divorce.

youre mistaken, fix rates are priced on swap rates which will factor in a whole host of economic factors, swaps rose after the br was cut, so it doesn’t always go down

OP posts:
Fifiesta · 20/12/2025 17:03

Surely if you are hoping to move, the extended part of the mortgage will potentially be obtained at a lower percentage point than the mortgage taken a few years ago when they were at their highest and you took a set rate mortgage?
If I have failed to understand this correctly, I’ll join the other ignoramus’s …

LighthouseLED · 20/12/2025 17:02

Fixed mortgage rates have nothing to do with the base rate

That’s not quite true. There isn’t a direct correlation between them, but changes to the base rate certainly influence mortgage rates for most lenders.

Original poster
Tempname1234567 · 20/12/2025 16:59

bleakmidwintering · 20/12/2025 16:57

Obviously!

Do you know how mortgage rates are set?

a lot of people think mortgages are priced from the base rate.

the base rate could be 2% and you could easily still see mortgage rates that are 4%+ and the inverse is true as well

OP posts:
Original poster
Tempname1234567 · 20/12/2025 16:58

LighthouseLED · 20/12/2025 16:56

Never underestimate the ignorance of the general public

Show quote history

It’s not people don’t know what product they are in that people do think more generally that because the base rate has come down mortgage rates will follow, so when their fix is up they might get a cheaper rate but it doesn’t really work like that. Fixed mortgage rates have nothing to do with the base rate

OP posts:
bleakmidwintering · 20/12/2025 16:57

Obviously!

LighthouseLED · 20/12/2025 16:56

ElizabethsTailor · 20/12/2025 16:53

How many people would not know this? Surely people know what their mortgage product is?

Never underestimate the ignorance of the general public

Poms · 20/12/2025 16:54

Slightly patronising

ElizabethsTailor · 20/12/2025 16:53

How many people would not know this? Surely people know what their mortgage product is?

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