Mortgage rates have fallen?

[MsGus]

I’m reading the news online and saw this. We were about to fix for 10 years but if there will be further falls we would rather wait. It is so confusing and unstable.

www.telegraph.co.uk/personal-banking/mortgages/mortgage-rates-drop-first-time-since-mini-budget/

May of?

This isn't how it works at all.
The bank just creates the money for the loan.
The BOE don't have a choice but to raise interest rates as the Fed (and all other central banks) are raising them. They need to raise to try to protect the £ (which has already been trashed). This has huge implications for imports which have already become far more expensive, unaffordable potentially.
If inflation really takes off, especially while wages remain low, it could be absolutely devastating.
I don't think we are at the point of falling rates for some time. It will depend on macro economic factors and I think there will be some various serious problems over the next few months, never mind years.

I was in the process of looking to buy and had an agreement in principle on my own. Interest rate was around 3.3 and mortgage was 4.1x, the week I had arranged my first viewing was the week everything fell through. The best I can get now is 3.1x and 9.3 percent. This has limited houses in my area to the point where there are only leasehold apartments or really awful houses available. Also, I would just rather not go for 9 percent. I have decided to wait 6 months and see what's going on then as I am set to have a wage increase in the spring and other factors. People who are lucky to own houses or especially individuals over 40 are constantly telling me what I should be doing or how things 'work' when in actuality they haven't the foggiest about the situation currently and how utterly screwed young people are. I am on over 30k and mid 20's and I'm finding it hard enough.

@marblemad I find it very hard to believe that the best mortgage rate you can get now is 9.3% when you could have got 3.3 a few months back

The markets only aren't predicting going higher because the mother of all austerity is incoming. Much tighter than 2010. Higher government spending will trigger higher interest rates.

Emergency low interest rates aren't good for the economy, I personally don't see them being that low again for years. They need to get a better control on inflation.

because the mother of all austerity is incoming.

yes it's going to be a shitshow

The back of England is putting up interest rates, which other banks are passing on to us so that they can reduce the amount of money being spent to keep inflation down. Part of the reason for inflation is the price of oil/gas due to Ukraine but also money being spent that was saved in the pandemic.

Because the last 10 years have hardly been austere. Labour bailed out the banks and signed up to very expensive PFI schemes. The conservatives splunked a huge amount wasted on furlough track and trace and COVID loans. They should have restricted earlier and lighter with no economic support. Let there be survival of the fittest economically.

@marblemad - definitely sit this one out especially if you are only in your early 20s.

I'm sure she (or he) is smart enough to have looked around. A lot of products for FTB have been withdrawn completely because of the high risk.

My son as a first time buyer has just got a mortgage with one of the big high street banks. Just over 5% fixed for 5 years and was offered 4.5 times his salary. He took under his max and has a decent deposit, good credit rating and no other debt.

Well he she or they want to look a bit harder than because Santander are offering 5.7 fixed for two years. 9% says adverse lender to me.

I suspect they will come down again when Rishi Sunak is appointed PM.

He'll be given a period of grace while the money markets expect him to restore order, and then it all depends what happens here and in the US.

My guess is they'll continue to creep down towards the end of the month but it will be marginal.

Labour bailed out the banks and signed up to very expensive PFI schemes. The conservatives splunked a huge amount wasted on furlough track and trace and COVID loans. They should have restricted earlier and lighter with no economic support. Let there be survival of the fittest economically.

This started in 2008 & the can was kicked down the road. Public services are under immense strain which isn't going to ease up with the huge demographic shift.

Not to mention the floodgates opening to Rushi’s fathers consultancy companies employees if he gets in. And of course in the interests of appearing to be fair we will need to grant thousands of other visas to various IT staff and if the IT staff are allowed to come in I’m sure you get the picture.

Yep, wonder if it is Boris writing again in the Telegraph (no subscription so can’t check) but that doesn’t match what the Bank of England said…

I would like to think that with Rishi being so rich, he will not be selling favours with donors in exchange of gold wallpaper.

I repeat it has nothing to do with politics, look at inflation and interest rates globally, treasury yields are spiking and the likes of Japan is in serious trouble. They are enacting yield curve control to protect the ¥ only for it to get smashed again and repeat the following week.

Yes the mini budget was idiotic, and the market sold off as the UK credit rating was looking shakey (trying to borrow and spend for tax cuts when should be going head long into austerity instead).

It really doesn’t matter what stamp duty/housing market props Sunak or anyone else tries to it in place. In 2008 was a bank led financial crisis, this time it’s a central bank/government treasury crisis which will be much worse. Most retiring on private pensions don’t even know yet their pension has already been decimated.

To his father in law ? Are you kidding me

FED 0.75 at the next meeting?

Sounding very like it.

I think they will chicken out and go for another 0.5%.
They seem to be desperately trying not to collapse the housing market despite sterling falling++. I don't think they will have a choice in the end though especially if the Fed keeps raising.

Great work by Nationwide Building Society leading the way on this and dropping rates by up to 1.30% for existing client rate switches from today.

I think they have to go 0.75% or there will be another market scare with mortgage rates shooting up in an uncontrolled way. I think people should just accept now that 8 - 9% mortgage rates are the future.