Mortgage rates
Discussion
Had a quick search, couldnt find much that was recent
My fixed rate comes to an end in January. I've been on a fixed rate for the last 2 years, so while others on SVR's have been laughing their way to their savings accounts I've plodded along with the same payment plan
I kinda like that though, but I have a choice to make. I've been offered 4.something as SVR from my provider come January, or fix til 2013 at 5.5% no fees
Would it be sensible to fix in at 5.odd and be done with it or my assumptions on when we'll get the rises a bit off?
My fixed rate comes to an end in January. I've been on a fixed rate for the last 2 years, so while others on SVR's have been laughing their way to their savings accounts I've plodded along with the same payment plan
I kinda like that though, but I have a choice to make. I've been offered 4.something as SVR from my provider come January, or fix til 2013 at 5.5% no fees
Would it be sensible to fix in at 5.odd and be done with it or my assumptions on when we'll get the rises a bit off?
You are asking for a crystal ball!
However there are a few pointers. A look at interest rate history shows that the double figure rates of 15 to 40 years ago are somewhat rare.
Politicians are still painfully aware of the electoral defeat of the last Tory lot, brought about mostly by failure to control interest rates.
Most mortgages are now on less than 5 percent and over the last ten years the base rate hasn't gone far over this and has mostly been a lot lower.
Add that lot up and I'd put my money on a variable rate working out cheaper than the 5.5 fixed rate. Higher rates are rare, politicians are sensitive to them and will try to avoid, people have got used to paying 5 percent or less and will blame the government if it goes much over 6.
One thing about fixed rates is that they are not trying to give you money, they are trying to take it off you. Someone, somewhere, is hoping that their investment in your mortgage provider makes money out of you. For this reason it is reasonable to assume that a lot of money is being bet on you losing out on a fixed rate.
However there are a few pointers. A look at interest rate history shows that the double figure rates of 15 to 40 years ago are somewhat rare.
Politicians are still painfully aware of the electoral defeat of the last Tory lot, brought about mostly by failure to control interest rates.
Most mortgages are now on less than 5 percent and over the last ten years the base rate hasn't gone far over this and has mostly been a lot lower.
Add that lot up and I'd put my money on a variable rate working out cheaper than the 5.5 fixed rate. Higher rates are rare, politicians are sensitive to them and will try to avoid, people have got used to paying 5 percent or less and will blame the government if it goes much over 6.
One thing about fixed rates is that they are not trying to give you money, they are trying to take it off you. Someone, somewhere, is hoping that their investment in your mortgage provider makes money out of you. For this reason it is reasonable to assume that a lot of money is being bet on you losing out on a fixed rate.
andy-xr said:
Had a quick search, couldnt find much that was recent
My fixed rate comes to an end in January. I've been on a fixed rate for the last 2 years, so while others on SVR's have been laughing their way to their savings accounts I've plodded along with the same payment plan
I kinda like that though, but I have a choice to make. I've been offered 4.something as SVR from my provider come January, or fix til 2013 at 5.5% no fees
Would it be sensible to fix in at 5.odd and be done with it or my assumptions on when we'll get the rises a bit off?
if you are going to fix you should be able to find a better deal than that.My fixed rate comes to an end in January. I've been on a fixed rate for the last 2 years, so while others on SVR's have been laughing their way to their savings accounts I've plodded along with the same payment plan
I kinda like that though, but I have a choice to make. I've been offered 4.something as SVR from my provider come January, or fix til 2013 at 5.5% no fees
Would it be sensible to fix in at 5.odd and be done with it or my assumptions on when we'll get the rises a bit off?
Personally, I dont think you need to fix in the next 18 months. If we were going to have a massivly fast recovery then yes, fix now. But recovery looks long term, 6 years plus maybe. Therefore rates should stay low. Time to 'make hay whilst sun shines' in terms of mortgage rates, and leave being ultra careful for another day.
Gassing Station | News, Politics & Economics | Top of Page | What's New | My Stuff