When do you think rates will come down?

[biggless]

No one has a crystal ball, but?

I'm sorry

I'm the same generation as you it would seem, but without the mortgage, because despite trying my best, I've never been able to get one, so maybe my behavior is warped jealousy. or bitterness at how ridiculous prices became.

I am actually genuinely sorry for upsetting everyone in this thread. I find it very easy to forget that there are real people behind these blocks of text, and it was not very considerate or compassionate of me to have a rant about historic rates and it did rather sound like I was mocking the afflicted.

I really really hope that for the sake of those looking at several hundred pounds more each month, that these rates ease to more manageable levels, and that house price reductions have a gradual landing over several years and not a fully blown crash.

Life isn't easy, and me bitching from the sidelines (not having a mortgage myself) is not helping anyone.

These things often go in cycles

up a bit further for 2/3 years and then possibly back down to 5%/4%

Fair play to you.

They've been abnormally low for 15 years, based on that my prediction is that they will hover around 8 to 10% for the next 15 years

some of us were paying attention though and could see what was about to happen. We broke out of a fix last year and paid an ERC of 5k in order to fix at 1.93% for ten years.

Clearly the banks who gave you that fix weren't paying attention!

I'm wondering if that bank is going to be able to stay solvent 😕

As pp said, fair play to you @MadameameBeans

I think base rate will be around 6.5 or 7% by next year and then maybe settle around 4 or 5% long term, so really the only give is for house prices to fall to a level that works for those numbers.

Fingers crossed! 4-5% is a healthy point, achieving a balance between return on savings and cost of borrowing. As you say though, for that to work, house price affordability needs to be better - especially for first time buyers.

Good for you for apologising

Money is bought and sold by banks who also hedge through future deals. Sounds like you were well advised, caught a limited deal, and was clear minded enough to part with the £5k which is probably what repelled others from getting there before you, so well done to you for protecting you and yours and the bank is also fine because they had money they'd bought at a low price that you were prepared to pay the £5k to engineer. Your fix is exceptional given 30-year US mortgages which has been touted here as a solution is now 7%, and that's what the market is trading at for mortgages now.

I fixed end of ly on 2.5% for 5 yrs. Not because I predicted anything just like security of knowing what I will pay.

soz my congratulations were for @butterflycatcher who took a lot of trouble to splash the £5k for an exceptional fix, nor for lucky serendipity, though that's also good news but not as impressive as @butterflycatcher who had to invest thought and money for it. All we can do is engage to our ability and sometimes it helps to not follow a reactive crowd too much and also to pay to save.

Its a shitshow at the moment because the rise has been more rapid than forseen. Also, once rates level out to more traditionally normal rates the full range will come back on the market. Historicaly banks have competed for business and offered rates at a discount to base. Currently the are all running at base plus a margin.

I think this time next year things will feel more normal - but it is never going back to the abnormal
Lows

An interest rate of around 5% is actually the historical average, interest rates have been abnormally low since the 2008 crash. The problem is the low interest rates have fuelled the exponential rise in house prices since then. And inflation is still not under control, and interest rates are the only mechanism the government seems to want to use to suppress inflation, so I actually expect them to go higher over the coming months. In fact, I don't see rates coming down any time soon, particularly as so many people have fixed rate mortgages now and the effect of interest rate rises takes a while to trickle through (you need a fair chunk of the population to end their fixes and renew at the higher rate for the effect to be felt).

If your mortgage advisor is so brilliant then why didn't you follow their advise to lock in 10 years below 2% - oh wait

Respect

😂

They really don't know. No one knows.

Our fix ends in about 18 months time. We are taking the view that if rates are 5% by then, all good, if they're back down as low as 4% then it will be cause for celebration in our particular circumstances.