Interest Rates Watch

[Freetodowhatiwant]

Just posting to see if anyone else is keenly watching out for the interest rate announcement. My mortgage is fixed for almost another two years anyway so I don’t have any personal skin in the game in that sense, but I have work involvement in the property market so I have a keen interest.

What I don’t understand is if the government are using interest rates as a tool to bring down inflation but are also encouraging the banks to be lenient and do things like extend mortgage terms surely the latter counteracts the desired effect on spending? Not that anyone is out spending on luxuries but instead the rising cost of living is having this effect on inflation. Although I guess it is the only real tool they have and it has in the past been proven to work.

Apologies for any sloppy wording with this, I am on my phone on the bus. Anyway, just thought I would start an interest rate watch thread. What with that and the rain.

I honestly think that not to take that would be madness at this point, in fact I think they will pull the deal before August.

No I already said I expected it to stay at 5.25% which was what nearly everyone was predicting. I don't expect it to start falling until May or June time.

That's very low, I would lock it in if you can.

Good advice, we can agree on that I think.

Looks like May/June is now off the table after the "experts" got it badly wrong (again) on the U.S economy, their prediction on jobs was about half the actual number, LOL.

Yay!

It’s not off the table as far as I’m aware. Off your table maybe.

More than likely off the FEDs table, and that is the only table that counts because the BOE have to follow them carefully. Why would they cut and risk having to U-Turn and hike harder and faster when their economy is still running "hot"? They dont care about mortgage debtors in the UK.

Well you do tend to err on the negative side if you don’t mind me saying so Crashy, like you thought U.K. mortgage rates would carry on rising for years when in fact fixed rate mortgages started falling by the end of 2023. You seemed to expect the base rate to rise at every meeting but it keeps sticking at 5.25% and the governor of the BoE himself is now hinting that the next move will likely be downwards. You are one of the few people that openly admits they want property prices to crash so it may be a touch of wishful thinking?

Time will tell if the BoE base rate has several falls this year. Mainstream thinking is that it will do but I know you don’t put much store by mainstream economists, financial analysts or financial markets so we’ll see. If I was a betting person I don’t think I would be betting on your predictions though given your less than perfect track record.

That the BOE have to very mindful of the worlds reserve currency (or risk a run on the pound) is just a fact, it isnt negative or positive! UK mortgage rates are rising now, and will rise further IMO, get used to rates for mortgages at about 8% IMO.

How can I get used to mortgage rates at 8% when they are only that high in your dreams?

😂😂😂

Not that long ago you were probably posting content from "experts" (on the payroll of banks) saying 5% base rate was "in your dreams", I won`t embarrass you by searching for them, LOL.

Eh? I never said 5% was in your dreams

Or posted content from experts saying it 🤷🏼‍♀️

So fastest interest rate hike in 40 years is normal, expected, business as usual, but mortgage rates can`t reach 8%? You have a very strange view of the credit/bond markets IMO.

Don’t be unkind 😢

That's great. What's your ltv? If you don't mind me asking .

3.99% is the lowest I've seen at 60ltv. Might pop into Santander tomorrow

It’s around 42-44%

congrats!

Unfortunately not a lot of people have this LTV so theyre still paying high 5% range. You got a really great deal there!

Quick question @Pollyannamex .. did you get that rate at the bank or through a mortgage broker?

Not sure if a mortgage broker can get you a better rate?

Thanks @Pollyannamex . Guess I should be happy that there is only 0.1% difference between c.20% ltv.

It was an offer on the Santander app for a 5 year fix with £999 fee

Anything with a 3 on it has been fantastic!

I'm on the app but can't see that rate- they must have pulled it 😭.

It’s still there when I look, maybe give them a call?