Mortgage Interest rates

Discussion in 'Finance, Property, Law' started by Murielson, Apr 29, 2005.

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  1. Looking into mortgage rates at the moment and wondered what folks opinion is on the way interest rates may go in the future. Current lender happy to offer me new terms (4.99 or 5.29%) but on specific rates for differing periods.

    Need to anticipate therefore whether it is better to secure good rate now because rates will go up in future or go with the flow for now and assume that rates will come down before picking up a good deal.
     
  2. There is a nasty rumour that rates have been suspended during the run up to the election to avoid volatility/distractions and there are now mutterings about a hike or two in the coming months with the figure 5.5% being mentioned a lot....... Let's hope not.
     
  3. Echo that......... snap up your fixed rates while you can.

    Anyone on a variable or a Base rate tracker type mortgage may want to look at changing schemes.....
     
  4. Thanks guys. Been offered 4.99 or 5.29 by current lender over different time periods. May look into the 5.29 over the longer period now.

    Been with them for 5 years or so now and service has always been good. Skipton by the way.
     
  5. Fixed rates have not been as competitive as they could be of late. It's to do with boring stuff about the SWAPs rate being higher than expected (and the fixed rates follow this more closely than the base rate). If you can hold your nerve a little longer you may find the fixed rates drop further but it is a gamble - once the base rate rises lots of people will pile into fixed rates again and they are bound to be less competitive.

    4.68% is lowest available at time of posting but there are plenty under 4.99%
    http://www.moneyfacts.co.uk/mortgages/charts/mortgages_fixed_noext.htm
     
  6. Realise that it is not the best rate available but happy with service and moving fees etc will not apply. Set up fee few hundred pounds (or was last time) and no proof of earnings, survey etc required.

    Easy life and lazy git I suppose!!
     
  7. Just been chatting with my mate in the City. He and I both agree that rates are likely to drop in the longer term and the risk of another 0.25% rise is now very slim.

    Best Geuss from the City is a 0.25 drop between Jul-Sep with perhaps an drop before Christmas.

    The middle term (2 yrs) very difficult to call but if you work on a base rate of 3.75% +/ .75% for next few years you probably wont get your fingers burnt.
     
  8. Still same thoughts on interest rates guys?

    My lender hasn't shifted yet and I have until 30 Jun 05 when my current deal runs out.
     
  9. The Nationwide is always worth a few minutes of enquiries,(got everything-mortgage ,current etc with them), still a Building Society but you've got to beat the carpet baggers off every year! as if I'm going to sacrifice some good rates long term for a few £100 worth of shares. Stay with them long enough, get a decent credit rating and your overdraft is picky pea nuts- 7p interest on a few days OD?And they don't write to tell you this and rip you off £25 for the privilege! it's just another line on the statement. Oh well, that's two black jacks less for the kids!!
    Avoid the High Street banks like the plague!
    Most Building Societies these days have good interest bearing current accounts, they may be slightly more picky who they take on but once you're in...just don't take the p%ss!
     
  10. Britannia Building Society also very good, they offer a 2 yr Discout Tracker Mortgage.

    2 Yr Discount Tracker

    There are no early redemption charges so ideal if you want look again in two years. Also 1.5%+BBR is a good deal for future as well.

    I have been with Britannia for 7 yrs on my third mortgage with them service is excellent and they are Mutual with an annual dividend. (Members Bonus)
     
  11. I approached my financial wizard (geek with bottle rimmed glasses) in a mad rush before the election to secure a fixed rate and I echoed the above various comments in regards to interest rates and the election. He stated this:

    He's 23, drives a big M3 BMW and has a large house in the Cheshire countryside. Switched on git!
     
  12. There is talk of a downwards move for rates now that the retail figures are in and there has been less spending on the high street. It's a strange time because they want to keep inflation low and encourage people to keep paying off their credit cards (as they have now started to do) but they also want to keep the high street economy ticking over. I enter a monthly competition on predicting interest rates before the MPC announce them so when I have done the research for that (for June's decision) I'll write more.
     
  13. Many thanks FS et al.
     
  14. My lender now offering:

    2 year fixed rate at 4.69%

    3 year fixed rate at 5.14%

    5 year fixed rate at 4.99%

    As prevously stated I am the loyal sort and they have good customer services etc. Fees are £100 application and £299 completion (except 5 year which is £399 comp).

    I know it is my decision guys but any thoughts welcomed.

    You done your Jun competition research yet FS? If not when is it due as I have until end of Jun when my current (very good, 3.?? %) deal expires?

    Thanks in advance.
     
  15. Northern Rock are also a good bet, especially for first time buyers. They offer a good rate, over flexible periods, with financial incentives added, and payment holidays at useful times of the year (provided you overpay before hand) i.e. for Christmas. Agreement in principle took 25 minutes which is not bad to say I have debts. They are going to incorporate these into the mortgage as an unsecured loan.