Mortgage Rate Rises
- Thread starter glenimp617
- Start date
If Trump goes through with protectionist tariffs then prices will rise in US and Europe, leaving BOE with very little choice on tackling inflation.Rates will continue to drop and drop because the housing market is buggered. Then when the next crash comes in the following decade we will be back where we started with high rates again further kicking the can down the road
We have 3 year fix at 3.75% ending January and online offer was 5.5% for 5 year fix which feels a bit like the usual loyalty discount (screwing customer)
Associate
BoE cuts to 4.75%
Out of interest, how did you find out so quick? WHere announces it? NEws sites seem to not update yet?
Associate
https://news.sky.com/story/money-in...of-england-consumer-news-latest-live-13040934 - announced at 12 on the dot. Reporters are held up in the basement at the BoE to get the message out once confirmed.
Out of....interest... I see what you did there
"We now think rates will fall only as far as 3.5% in early 2026 rather than to 3%" which I still don't think is all that bad considering where they've been. inflation expected to increase slightly as well
Associate
renewal for me in 2026 so hopefully it can do better than 3.5 but we shall see... not going to get my hopes up though with all that's going on
Paul Dales, chief UK economist at Capital Economics
At this stage these forecasts are meaningless. Soon you'll have a madman in the US about to start a trade war, our interest rate and economic future really depends on what Trump does..
Associate
Exactly. Analysts predict that central banks may need to raise interest rates again to combat the inflation this could generate.
I don't really see why interest rates need to go up in this case to beat inflation from this.
If prices rise and people have same/less cash surely some companies will go under due to less sales. Or have to lay off staff.
Meaning less public spending and thus inflation ebbs away on its own.
If prices rise and people have same/less cash surely some companies will go under due to less sales. Or have to lay off staff.
Meaning less public spending and thus inflation ebbs away on its own.
Caporegime
I am currently in the process of taking equity out of my house to go back to school and with Barclays they offered me 4.24% on a two year fix with no fee. I am hoping with this announcement that it will come down closer to 4%. That is with the 60:40 LTV though.
We have 1:6 LTV which is why it feels they are taking the mickey.
There is gonna be a combination of all 4. But unlikely to affect margins. SME will work harder for longer to maintain margin and making cuts to staffing and raising prices in medium term.
Larger businesses will do all and increase margins.
This is probably gonna have the result of increasing overall UK productivity overall but at the cost of longer working hours and poorer (mentally as well as financially) workers but more enriched top end.
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Soldato
3.5% is fine, doesn't want to go much lower though otherwise we'll end up in a mess again.
Global factors aside, the mortgage market at least has somewhat adjusted to higher rates, dropping them again, well dropping them too far, will just start up the nonsense again.
Yes I think all 4 will feature, it's just that the default expectation seems to always be for businesses to push higher prices on consumers as we just keep paying them. Not a lot of choice with tings like food to be fair.
Associate
Looking at mortgage options, what's the view on fixed vs tracker at the moment? I was leaning towards a tracker due to talk of 0.25% drops at every upcoming MPC meeting in 2025 - however, the budget has shifted this view.