almost at the end of my fixed rate...
Discussion
Have a fixed rate with the Chelsea which ends in a couple of months.
Am going to speak to the Chelsea at lunch time to see what it will change to, I was hoping it would drop to the Bank rate of .5%, but I do not have that sort of luck!
I have had "questionable" credit ratings in the past (still not brilliant, but on the mend), what are peoples thoughts for what will happen after the election if The Tories get in.. higher interest rates?
Am going to speak to the Chelsea at lunch time to see what it will change to, I was hoping it would drop to the Bank rate of .5%, but I do not have that sort of luck!
I have had "questionable" credit ratings in the past (still not brilliant, but on the mend), what are peoples thoughts for what will happen after the election if The Tories get in.. higher interest rates?
Yep, when QE ends who will buy the massive piles of govt debt!
Nobody unless govt spending falls and the state reduces in size.
The knock on effect is all interest rates will rise in pace. No point holding dodgy bank bonds paying less than govt debt which has the benefit of being funded by taxpayers is there!?
Nobody unless govt spending falls and the state reduces in size.
The knock on effect is all interest rates will rise in pace. No point holding dodgy bank bonds paying less than govt debt which has the benefit of being funded by taxpayers is there!?
Our mortgage with the Nationwide ends in March. As we are within 3 months of the end, we are able to start looking at switching.
They are doing a 3 year fixed deal at 4.3% and I did think about switching to that as our current fixed rate is 5.19% (signed up to 5 years ago).
Anyway the chap on the other end of the phone has quoted me an SVR of 2.5%, so my current thinking is to go with that but to be blooming sure I keep an eye on the BOE Base Rate.
They are doing a 3 year fixed deal at 4.3% and I did think about switching to that as our current fixed rate is 5.19% (signed up to 5 years ago).
Anyway the chap on the other end of the phone has quoted me an SVR of 2.5%, so my current thinking is to go with that but to be blooming sure I keep an eye on the BOE Base Rate.
I'm in almost the same boat, Catherine - a chunk of my Nationwide mortgage came off fix at the end of December. The mortgage woman from the local branch did call to try to get me to go into discuss a new deal but even she didn't try too hard to talk me out of it when I said that I didn't want to refix on any of their then-available deals since they would all be rather higher than the default BOE base rate pls 2% variable rate.
I kicked myself when fixed the other large chunk of the mortgage in June 2008 at 5.5% or thereabouts, just before rates plummeted....
Ah well, I suppose I now have a compromise - part of the mortgage fixed for another 3.5 years and part left variable. As you say, the issue will be to keep an eye on base rates and pick the right time to jump off and re-fix - and hope that they don't go up quite as quickly as they came down!
I kicked myself when fixed the other large chunk of the mortgage in June 2008 at 5.5% or thereabouts, just before rates plummeted....
Ah well, I suppose I now have a compromise - part of the mortgage fixed for another 3.5 years and part left variable. As you say, the issue will be to keep an eye on base rates and pick the right time to jump off and re-fix - and hope that they don't go up quite as quickly as they came down!
Edited by Lurking Lawyer on Wednesday 20th January 15:48
Lurking Lawyer said:
I'm in almost the same boat, Catherine - a chunk of my Nationwide mortgage came off fix at the end of December. The mortgage woman from the local branch did call to try to get me to go into discuss a new deal but even she didn't try too hard to talk me out of it when I said that I didn't want to refix on any of their then-available deals since they would all be rather higher than the default BOE base rate pls 2% variable rate.
I kicked myself when fixed the other large chunk of the mortgage in June at 5.5% or thereabouts, just before rates plummeted....
Ah well, I suppose I now have a compromise - part of the mortgage fixed for another 3.5 years and part left variable. As you say, the issue will be to keep an eye on base rates and pick the right time to jump off and re-fix - and hope that they don't go up quite as quickly as they came down!
Next decision from BOE is 4th February. Now we are stuck on 5.19% until 31st March, so there will be 3 Mortgage Payments go out between now and then as ours goes on the 27th of every month. An extra £105 month in the bank would be nice.I kicked myself when fixed the other large chunk of the mortgage in June at 5.5% or thereabouts, just before rates plummeted....
Ah well, I suppose I now have a compromise - part of the mortgage fixed for another 3.5 years and part left variable. As you say, the issue will be to keep an eye on base rates and pick the right time to jump off and re-fix - and hope that they don't go up quite as quickly as they came down!
Have also noticed that if you go on a fixed rate, when it ends they stick you on SMR rather than BMR.
CatherineJ said:
Have also noticed that if you go on a fixed rate, when it ends they stick you on SMR rather than BMR.
Indeed I did - which is another reason to avoid switching to another deal until I have to, as the new SMR is a lot less favourable than the old BMR. I suspect Nationwide got caught with its pants down with their "never more than 2% above BOE base rate" for its standard variable rate, and there will be a lot of people in the same boat as us coming off fixed deals and back onto an effective rate of 2.5%....
Edited by Lurking Lawyer on Wednesday 20th January 16:14
Lurking Lawyer said:
I suspect Nationwide got caught with its pants down with their "never more than 2% above BOE base rate" for its standard variable rate, and there will be a lot of people in the same boat as us coming off fixed deals and back onto an effective rate of 2.5%....
Totally. Whatever they now say, noone expected rates to drop like they did. NW are pretty hamstrung by their inability to get rid of their SVR borrowers. As you say the BMR was built into new mortgages to avoid this happening again.Gassing Station | Finance | Top of Page | What's New | My Stuff