Not necessarily if inflation is falling then the conversation changes to a balance between the rate of fall and the pain of further increasing rates. I’m definitely expecting rates to go up at the next meeting as the fall in inflation isn’t yet particularly significant. Beyond that it starts to get interesting the bank needs to balance bringing down inflation against deepening the recession.
Mortgage Rate Rises
- Thread starter glenimp617
- Start date
Yes, they look ahead and try to estimate where inflation is going, but the conventional orthodoxy is that the interest rate will roughly be inline with inflation to control it.
5% seems to be the medium term expectation.
Most banks and building societies don't expect it to go that high, hence why you'll currently get a better fixed rate if you pick a 5/10 year over a 2 year.
2 year swap rates currently sitting at 4.2. 5 year are below 4
Soldato
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Assuming government and official bodies act rational, seems reasonable. Luckily, I doubt they will be as harsh as required. I think more likely there is a lull or second stage effect. King ex BOE says rates should rise as you suggest, he is probably considered out of line for speaking freely.
Mortgage price war knocks £1,700 off annual payments
This is despite expectations the Bank of England will raise the Bank Rate this week
www.telegraph.co.uk
Do far looks like top of market has passed. Luckily I doubt many got locked in super highMortgage price war knocks £1,700 off annual payments
This is despite expectations the Bank of England will raise the Bank Rate this week
Caporegime
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Rate depends on your lender/terms.
Whether it's worth waiting will depend on what your SVR is. Whether rates will drop and how fast its hard to predict.
Was just having a look at mortgage rates because ours is up next February and I saw a few of the better deals saying "EPC A or B only". Are they having a laugh. They are genuinely going to devalue peoples properties by making mortgages harder to get and more expensive on houses that are either unfeasible to update or the occupants can't afford it.
Yup, 2028 is Scotland for this. From 2032 you won't even be able to sell a property if it's EPC D or higher. No wonder mortage companies are starting to restrict lending to these sorts of properties given the length of typical mortgages.
Thats going to be great fun. A huge number of people will get absolutely taken to the cleaners to bring their house up to spec because builders will be able to charge what they liked due to demand and then a bunch of cowboys will make a mess of some of those and cost people silly money to get it all fixed. If the government wants to force people to upgrade their houses they need to make damn sure its not going to financially ruin people.
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Deleted User 298457
Deleted User 298457
Any builder that is charging an affordable rate is often a joker anyway; so no change really.
From a brief read, if its not feasible or cost effective you can get a waiver. That should cover a huge amount of housing stock. If I had cavity walls I would happily stick insulation in there. Anything we did to our house to increase the EPC rating by any serious amount would probably cost north of £20k and devalue the house by a similar amount if not more.
Deleted User 298457
Deleted User 298457
If anything, properties that are sorted will increase in value. That means those not sorted can get the capital mortgaged against the property to do the changes. Net benefit - houses are more efficient. Downside - screw poor people.
Yeah, £20k was just the amount it would likely cost us to clad the outside of our house to increase the thermal efficiency. If we wanted to do solar, insulate walls and under the floors and probably upgrade to triple glazing we would easily be looking at £70k+. Our house might maintain its value due to those upgrades that offset the fact we would have an edwardian house that looks like a new build.
Caporegime
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Didn't even realise we had one. How long do these licences last? Ours expired in 2019 so must have been done by previous occupants when they sold to us in 2010. Ours was a D. 1970's house with double glazing, wall insulation and loft insulation. Now has led lighting throughout and that's it. More than likely a new boiler would bring it up to C.
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Those are the green mortgage deals.
This rule is coming in imminently. It’s likely already impacting the rental market.