Secure 5 year fixed mortgage TODAY or wait to hear news of interest rate announcement tomorrow

[Lovelyveg80]

5 year fixed at 4.18%

or

wait for announcement tomorrow

thoughts?

A fixed tracker is a % fix above BOE base rate. A fixed rate fixes a set rate for x period.

OP you have probably done the right thing, although I work in a mortgage brokers and most of my colleagues are having to rebroke mortgages left right and centre where rates have come down.

Thank goodness I work in the insurance side 😅

To be clear

the second photo (5 year FIXED rate of 4.18%) is what I have signed up to

Phew!

Can you tell me how to work out how much my interest is per week please?

Any rate secured today will usually be valid for at least three months before you need to complete.

🤣🤣🤣 glad we cleared that up OP

id never refer to a tracker as a fixed tracker though

Id say I’m in a tracker until 2024

or tied in until 2024

It’s a decent rate - much better than those poor folk who tied themselves into 5/6 percent mortgages a few months back

i think even in 5 years they’ll be roughly the same as now

Goldman Sachs (massive US bank) are predicting inflation down to below 2% by the year end. If they are correct, interest rates would be expected to come down.

It’s n your broker’s interest to get you to take a short-term fix as you’ll be back to re-fix in 2 years and he’ll get another commission

Brokers are NOT allowed to write a mortgage based on commission. They have to write it to suit a clients individual circumstance.

Mind you, late last year GS were making the bleakest predictions amongst the forecasters… predicting 22% inflation in UK in Jan, which didn’t remotely hit.

https://amp.theguardian.com/business/live/2022/aug/30/pound-uk-recession-economy-mortgages-energy-market-gas-business-live

@Toooldtoworry they may not be allowed to but they do have a history of advising clients to do what gives them the most commission...

I've worked in that environment for over 20 years. For the first 5 years of my career I'd agree with you but there is no way regulation since then would have allowed an adviser to do that without getting struck off.

@Toooldtoworry how would they ever get caught? They would just say they thought it was the best advice at the time, likely they always do.

@Lovelyveg80 that was before Sunak stepped in to cap everyone's energy bills.

Incorrect

That article was October 2022

price cap introduced Q1 2022

Yes a “history”

Now? The regs are pretty much as tight as they can be

Sorry article was 30/8/22

@Lovelyveg80 regulation has changed, but hard to prove that an advisor isn't guiding clients towards products that earn them more commission and are renewed more frequently so why wouldn't they. I avoid them like the plague.

Yeah I imagine inflation will either fall in line with US/Europe and if it doesn’t (as this weeks data could be the starting point) we’ll be having a bigger recession than currently thought - as we’ll need to hike rates higher than our peers to get our sticker inflation under control (thank you Brexit, Tory greedflation).

Eh?

price cap was introduced in for Q4 2022.

Article was late August. They were still wrong though. Inflation would have hit like 15% without EPG, or something.

* Why was the energy price cap introduced? It was introduced by Ofgem, the body that regulates energy in Great Britain, in January 2019. It followed concerns that many people, particularly those who did not switch supplier to find cheaper deals, were paying too much for their energy.*

my mistake. Not Q1 2022

It was a ridiculous over estimate and roundly criticised within the industry at the time

So doesn’t give me much faith in current projections!

I am an experienced financial services professional and can tell you with certainty that it will make no difference to the mortgage rate you secure if you fix today or after the BoE decision. The banks will have locked in their funding rates months ago and those rates will have largely priced in an interest rate increase today.

That’s the price cap. Not the EPG brought in by the govt in October 2022.

January cap was £4279, govt covered difference above £2500.