Base rate

[Mustang]

Fixed rate mortgage runs out soon! eek

Rung the mortgage co just now - currently offering svr of 4.69% or a fixed rate "deal" of 4.59%!! Someone in the top brass is "...'Aving a laugh!!"

I did have a bit of fun with the guy on the phone and told him to call me when their rates got realistic!!

[BrilloPad]

What sort of loan to value percentage are you looking at? How many times earnings?

[Cyberman]

Fixed rate mortgage runs out soon! eek

Rung the mortgage co just now - currently offering svr of 4.69% or a fixed rate "deal" of 4.59%!! Someone in the top brass is "...'Aving a laugh!!"

I did have a bit of fun with the guy on the phone and told him to call me when their rates got realistic!!

Why fix when rates could be low and getting lower for the next year or so ? In fact the bank rate is expected to fall another half point very soon. Most people at the moment are going for Standard Variable Rates because these are falling. My advice would be to check the Mail on Sunday Best Buys section and forget fixed rates, but also consider an offset mortgage.

[Mustang]

Why fix when rates could be low and getting lower for the next year or so ? In fact the bank rate is expected to fall another half point very soon. Most people at the moment are going for Standard Variable Rates because these are falling. My advice would be to check the Mail on Sunday Best Buys section and forget fixed rates, but also consider an offset mortgage.

Good advice Cyberman. Not looking to fix at present - just thought it amusing that they thought both rates were good!! Not sure how they justify them when BoE rate is so low. I know they are based on libor rates but isn't that just set by the banks themselves?

[Cyberman]

Good advice Cyberman. Not looking to fix at present - just thought it amusing that they thought both rates were good!! Not sure how they justify them when BoE rate is so low. I know they are based on libor rates but isn't that just set by the banks themselves?

The thing is that if you fix for a number of years they have to take into account what rates will be a few years into the future. They will obviously be higher than today's rates as you have a falling pound coupled with current low interest rates causing a possible consumer spending boom with the corresponding high inflation. So if you fix now you are paying a premium effectively as insurance to the banks.