The impact of a Bank Base Rate cut on mortgage pricing

[Martin@AS Financial]

Interesting article from Mortgage Solutions:

The impact of a Bank Base Rate cut on mortgage pricing - Marketwatch

[Freelancer Financials]

Interesting article from Mortgage Solutions:

The impact of a Bank Base Rate cut on mortgage pricing - Marketwatch

Interesting Indeed. I personally don't think there will be a further rate cut. It's not necessary as interest rates are already fairly competitive. Furthermore, a cut in the BoE base rate doesn't mean lenders will pass this reduction onto borrows.

[Lightwave]

Interesting Indeed. I personally don't think there will be a further rate cut. It's not necessary as interest rates are already fairly competitive. Furthermore, a cut in the BoE base rate doesn't mean lenders will pass this reduction onto borrows.

When I took out my main mortgage, some 18 years ago, SVRs were typically 1.5 to 2% above base rate. Teaser rates on mortgages with fees were below base.
The lifetime tracker I took out at 1% over base was a long way from being the lowest rate.
Base rate has lost most of its connection with mortgage rates.

My view is that UK bank rates will probably be forced up when the USA chooses to raise theirs.

[Martin@AS Financial]

Interesting Indeed. I personally don't think there will be a further rate cut. It's not necessary as interest rates are already fairly competitive. Furthermore, a cut in the BoE base rate doesn't mean lenders will pass this reduction onto borrows.

Very true

Mike Jones from Halifax puts forward the case that a fall in base rate could increase the cost of fixed money:

"There is also the possibility that the interest swaps market would react to a drop in the base rate by worrying about the need for a rise beyond current expectations longer term. As these markets have a big influence on mortgage pricing it is therefore entirely possible that fixed mortgage rates would rise, not fall."