Mortgage Rate Rises

alexakasloth said:
The BOE Governor has said that they could be more aggressive with cutting rates.

www.bbc.co.uk

Interest rates: Bank of England could be 'more aggressive' on cuts

Governor Andrew Bailey hints that borrowing costs could come down faster if inflation stays in line.
www.bbc.co.uk www.bbc.co.uk

Hopefully that means another cut in rates in the near future. Hopefully.
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The odds of the Bank of England cutting interest rates in November are high, with some predicting a cut in both November and December.
According to the latest money market pricing, a cut in Bank Rate next month to 4.75% is now a 96.5% chance, leaving only a 3.5% likelihood that the BoE leaves rates on hold at 5% again. Before Andrew Bailey's Guardian interview moved the markets, a November cut was around an 88% chance, the markets indicated.
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Correct my misunderstanding here, but aren't the BOE also warning of a possible credit crunch, surely not a time to consider further interest rate cuts? Seems a little contradictory?
 
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Crizzy said:
Correct my misunderstanding here, but aren't the BOE also warning of a possible credit crunch, surely not a time to consider further interest rate cuts? Seems a little contradictory?
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A credit crunch is a basically a sudden lack of money - in this case the BOE is warning of a sudden market crash being the cause. Lending dries up and the economy often goes into or is already in a protracted deep recession. Lowering base rates in that scenario makes sense as its an attempt to facilitate lending but until the cause of the crunch is rectified borrowing money is usually harder and more expensive regardless of the base rate.
 
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We fixed for 5 years at 4.64% back in January and rates have dropped quite a bit since. Our lender now offer 3.79% for the same 5 year fix. Assuming rates don't increase by January we'll be bailing as the savings now far outweigh the early repayment penalty and booking fee of the new deal combined.
 
If things carry on as they are looking I think I'll have successfully weathered the storm by time I come to renewal
 
413x said:
If things carry on as they are looking I think I'll have successfully weathered the storm by time I come to renewal
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2 years left on my 5 year fix @ 2.1%... I had almost no credit history in UK when I got this though. I think more "worthy" people were getting sub 1% at that point.
Keep going down baby!
 
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danlightbulb said:
I have until mid 2027. I'm hoping for 3.5% by then, any more than that and it's going to be painful. On 3% currently, taken out in 2022.
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Same timeline as me.
I'm hoping for sub 3pc myself.

Its nearly 3 years away. Plenty of time for some down time... Of course world could go to **** and it doesn't matter!
 
danlightbulb said:
I have until mid 2027. I'm hoping for 3.5% by then, any more than that and it's going to be painful. On 3% currently, taken out in 2022.
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413x said:
Same timeline as me.
I'm hoping for sub 3pc myself.

Its nearly 3 years away. Plenty of time for some down time... Of course world could go to **** and it doesn't matter!
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Similar to me. Late 2027 for my renewal. Currently 3.4% (coming from 1.85%). Of course I would like it be to be sub 3% but I'd settle for anything under 3.5% just to keep the payment the same. I plan on overpaying from the start of next year (about a 35% overpayment each month) so anything above my current level just eats into the overpayment a little more.
 
danlightbulb said:
I have until mid 2027. I'm hoping for 3.5% by then, any more than that and it's going to be painful. On 3% currently, taken out in 2022.
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It is already 3.7ish now, assuming you have 60% LTV. Can't see it not dropping down more unless another big event occurs.
 
ivrytwr3 said:
tracker.

Originally 0.84%, all the way up to 6% and now sat at 5.75%.
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ouch that must hurt.

I've got 3 different sub accounts on 3 different rates (good/middle and not amazing-but-not-bad) first once is up in 2026 and I'm torn between hammering it or dumping it into savings. Savings rates are higher than the mortgage and I know what I SHOULD do but I do like seeing the balance go down
 
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