6% mortgage rates

[spring33]

Old thread https://www.mumsnet.com/talk/property/4813815-5-mortgage-rates?page=1

New thread, let's hope the next one won't be 7% interest rates or higher.

Yes you win my respect 😂

I don't really know what the likes of him are like anymore. I stopped working with investment banker types over a decade who had private educations. They are very faraway mates now.

Most of my mates struggle to have two brass farthings to rub together.

Oh dear, it looks like mortgage rates are going to start climbing again after today's wage inflation data.

https://news.sky.com/story/cost-of-living-latest-sky-news-blog-12615118

@DrySherry it was always going to be this way, I don’t know why people thought the raising rates would bite quickly and work immediately.
This is just at the beginning of a new financial cycle, and they last for years at a time. The last one, let’s call it ‘low interest rates’ lasted 18 years. Though I think they are historically less than that.

I think you are probably broadly correct, this may well be just the start of an extended downward cycle.

I don't think this is really a "major blow" though the media do love dramatic language @DrySherry

The BOE base rate is still expected to increase from 5.25% to 5.5% on September 21st and peak at either 5.75% or 6%.

Interest rates are still expected to slowly start falling from 2024 and continue for the next few years to a rate of 4% or just under.

Exactly the data and information released in March but I suppose its tricky thinking of catastrophic headlines every week around that soooooo

U.K. inflation rate falls again from 8.7% in May to 7.9% in June to 6.8% in July.

Very worrying that core inflation did not come down at all. This is the more important measure to the BOE and will mean they haven't done enough. Higher rates for longer is now the likley outcome. I expect mortgage rates to start slowly ticking up again and the base rate to reach at least 6% by spring :(

I still expect the base rate to peak at either 5.75 or 6% by end of 23/early 24.

I played around with a few figures on this website and found fixed rates of 4.9%and 5%. I have never used this service so couldnt say if it was any good but it appears to look at most of the usual lenders

https://better.co.uk/mortgages/fixed-rate?campaignid=20395266441&adgroupid=150368896223&feeditemid=&target=kwd-50098553&locationinterest=&locationphysical=1007000&matchtype=e&network=g&device=m&devicemodel=&mobile=[mobile]&notmobile=&searchnet=[search]&displaynet=&adid=666972860527&keyword=mortgage%20deals&placement=&adposition=&utm_source=google&utm_medium=cpc&utm_term=mortgage%20deals&utm_campaign=&hsa_acc=5317582063&hsa_cam=20395266441&hsa_grp=150368896223&hsa_ad=666972860527&hsa_src=g&hsa_tgt=kwd-50098553&hsa_kw=mortgage%20deals&hsa_mt=e&hsa_net=adwords&hsa_ver=3&gclid=CjwKCAjw5_GmBhBIEiwA5QSMxPYvf5cgdSkMsnAVP9x-oo9_MuXxUedWVkOkSK_Q4Nhf-jTouB6gChoCo9MQAvD_BwE

Latest results show the expected reduction in CPI, but my take is the markets are still worried about stuff like core inflation and wage inflation.

We're still someway off the gilt yields we had in mid July, but they are trending back upwards towards those figures.

IIRC recently mortgage rates fell back as yields decreased from the mid July high point, but they should be slowly increasing again. My guess is they will reach the mid July high before the BOE gets its chance to impose another rate rise, which IMO is pretty much nailed on for the next MPC meeting.

Yes I think it’s pretty certain that the BOE base rate will be increasing to 5.5% on September 21st.

There’s plenty others that are enjoying the 5% on our savings while still locked in to less than that on our mortgages

I know, that's me.

Sister and BIL are enjoying 6% fixed rate saving vs 1.5% mortgage. Fixed for 4 more years.

@Twiglets1 Me too. Do you think 6% is as high as savings rates will go?

Apparently you can already get 6.1% with a 2 year fixed savings account. Can't see them going much higher though. Through a Bank called Recognise, which is ironic as most people won't have heard of them.

https://www.moneysavingexpert.com/savings/savings-accounts-best-interest/#fixedsavings

@Twiglets1 I've had my eye on Recognise. Yeah, I'm thinking its not going too much further.

5.85% with Tandem for 1 year

Yes, we’re on 3% mortgage rate for another 4 years and have got 5% on savings.

I just had a little look on the mortgage comparison size I’m with 60% loan to value I can get 3.99 fixed for two years. Happy enough with that.

That sounds excellent.

It’s a £70 increase on what I’m currently paying, but not terrible

Very good really when you consider the rates some people are unfortunately having to pay coming off fixed rates.