Mortgage Rate Rises

I'm certainly expecting slower rises.

I know this is an exceptional event, and I believe the markets have overreacted. But that's the game I guess. But I still feel fed etc haven't waited long enough to see the effect of this rapid rate rise.

Just my noob view
 
TheOracle said:
Yeah.....and I did say a while back that when I fixed my mortgage (two weeks ago now?) the rates would drop......so you know damn well they will do lol

Basically do the exact opposite of what I do
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Have you actually started on your new fix yet? Or waiting for it to start ?.

I'm.remortgaging now and hoping the lender drops rates before my new product starts in july I'll ring and ask them to adjust it.

Don't hold much hope though. If they rise I'm covered by the offer letter and deal which is locked in for now

Sucks to be on a 5 year fix though at 4.15%
 
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DJMK4 said:
What does this mean for UK mortgage rates exactly ?

I'v got a re mortgage offer letter from Barclays . Are rates going to rise ? Fall ?
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Well after SVB and this 'traders' have repriced government debt the world over, some are even pricing in a fed cut next week. Contagion in the banking sector spreads worldwide so it doesn't matter if it is a Swiss or American or Martian bank. Best guess, rates won't rise much more as things are breaking. Simply too much cheap debt around to sustain it.
 
DJMK4 said:
Have you actually started on your new fix yet? Or waiting for it to start ?.

I'm.remortgaging now and hoping the lender drops rates before my new product starts. I'll ring and ask them to adjust it.

Don't hold much hope though. If they rise I'm covered by the offer letter and deal which is locked in for now

Sucks to be on a 5 year fix though at 4.15%
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No it starts in June
 
200sols said:
Well after SVB and this 'traders' have repriced government debt the world over, some are even pricing in a fed cut next week. Contagion in the banking sector spreads worldwide so it doesn't matter if it is a Swiss or American or Martian bank. Best guess, rates won't rise much more as things are breaking. Simply too much cheap debt around to sustain it.
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Amount of debt in every form (national, personal, corporate) is shocking.
We simply can't raise interest rates like the past as everything collapses.

I'm guessing fed will stick at no change for next one
 
Spoke with mortgage advisor about my remortgage. They STRONGLY suggested fixing for 5 years, they explained the reasons why and it made sense (crunched some numbers etc) - I just can't remember them right now.

We're looking at around 4.17% for 5 years with Nationwide. I really hope rates drop before this starts (June) but i'm doubtful.
 
Andr3w said:
Spoke with mortgage advisor about my remortgage. They STRONGLY suggested fixing for 5 years, they explained the reasons why and it made sense (crunched some numbers etc) - I just can't remember them right now.

We're looking at around 4.17% for 5 years with Nationwide. I really hope rates drop before this starts (June) but i'm doubtful.
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In a very similar boat, had a call with our advisor earlier this week and also leaning towards a 5 year fix now instead of a tracker - although we're going to keep watching rates until current deal is up in June as well.
 
Maccy said:
Are they? Your crystal ball telling you this, or the crazy poster earlier in this thread who says rates going to go beyond 6%?!
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Crystal ball would help, but in lieu of that we can address the situation. The BoE are ultra doves and look at bond yields post SVB, crashing hard. The banking system is breaking already so further substantial rate rises seem unlikely, inflation will fall rapidly as the anniversary of the rises happen although I'm sceptical it will get to 2% anytime soon. So if you want to bet, rates will fall this year but if you want certainty then fix and don't sweat it as things could easily change.
 
Maybe time to lock instant access savings in for a longer time at the current rates then.

I suppose seeing what the Fed do next week will be an indication. Do they go before the BoE?
 
dLockers said:
What's the sense on 5 year? Surely rates are more likely to drop than ever before with SVB?
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My view atm would be to do this.

Work out costs for 2 year. Work out costs for 5 years.

Then work out what is the expected best case in 2 years, and what is the worst case. Then what is the costs.

Figure out if the risk/reward is worth it over 5 years.

If the rates drop in 2 years, are they likely to be significantly dropped, and not just the rates mind, its the mortgage offers, as even with rate drops, banks may not drop much
 
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