Will the further interest rate drops over the coming months years?
Seems strange that the Bank of England would reduce interest rates to make mortgages cheaper when there is a credit crunch already – wont this make the situation worse?
5 Comment(s)
i’m all excited cuz mine have dropped yay. i got a varible rate £50 less for me a month
All the major lenders – Woolwich (aka Barclays), Lloyds TSB etc etc, have announced they will drop their variable rates today by 0.25% mirroring the drop by the BoE.
I believe, and the talk is, is that there will be another 2 drops of 0.25% before christmas, after that is anyones guess.
It all depends on how deep the credit crunch is going to be…. or is!!
I came off a fixed rate deal in January this year, I took a no fee variable rate with the same lender. Although it is a little higher than what can be got out there (it is now 5.69%) there was no fee and no redemption penalty – so I have the freedom to change whenever I like.
So I’m going to see where interest rates go in the next few months a decide when to take out a fixed rate, when the experts believe the tide has turned on lowering interest rates.
So keep an ear to the ground – read lots of articles, and don’t listen to closely to people who want you to believe that interest rates will be going up soon…. as they won’t….. inflation or not.
The differential on tracker rates is poor at the moment. What I mean by that is that lenders will do Bank of England Base Rate (BoE) +0.85% whereas they have been doing -0.1% in the not so distant past.
Tracker rates may well look attractivein the short term, next 6 -12 months as the BoE is likely to continue with further rate cuts. Beyond that you may as well ask the cat, as no one knows what will happen to rates. So they could rocket back up again and you could lose out on the savings you’ve made whilst rates have been reducing. Therefore, if you are going to go tracker I would say don’t tie yourself in with redemption penalties for more than the next 2 years. You could even look at someone like Nationwide Building Society who if you take tracker with them will allow you to jump onto one of their fixed rates at any point, but remember you would have to pay any appropriate booking fees to them.
If you’re the sort of person that likes stable payments or you’re heading towards the top end of your mortgage budget go fixed, so you don’t have to worry.
i’m all excited cuz mine have dropped yay. i got a varible rate £50 less for me a month
miss young | May 22, 2009 | Reply
Moving to a tracker rate won’t necessarily make it cheaper. It just means it tracks the Bank Of England rate.
dunrobin46 | May 26, 2009 | Reply
Just because the Bank of England has reduced interest rates doesnt mean that this reduction is going to be passed onto people with mortgages.
leambi | May 29, 2009 | Reply
All the major lenders – Woolwich (aka Barclays), Lloyds TSB etc etc, have announced they will drop their variable rates today by 0.25% mirroring the drop by the BoE.
I believe, and the talk is, is that there will be another 2 drops of 0.25% before christmas, after that is anyones guess.
It all depends on how deep the credit crunch is going to be…. or is!!
I came off a fixed rate deal in January this year, I took a no fee variable rate with the same lender. Although it is a little higher than what can be got out there (it is now 5.69%) there was no fee and no redemption penalty – so I have the freedom to change whenever I like.
So I’m going to see where interest rates go in the next few months a decide when to take out a fixed rate, when the experts believe the tide has turned on lowering interest rates.
So keep an ear to the ground – read lots of articles, and don’t listen to closely to people who want you to believe that interest rates will be going up soon…. as they won’t….. inflation or not.
Good luck!!!
John H | Jun 1, 2009 | Reply
The differential on tracker rates is poor at the moment. What I mean by that is that lenders will do Bank of England Base Rate (BoE) +0.85% whereas they have been doing -0.1% in the not so distant past.
Tracker rates may well look attractivein the short term, next 6 -12 months as the BoE is likely to continue with further rate cuts. Beyond that you may as well ask the cat, as no one knows what will happen to rates. So they could rocket back up again and you could lose out on the savings you’ve made whilst rates have been reducing. Therefore, if you are going to go tracker I would say don’t tie yourself in with redemption penalties for more than the next 2 years. You could even look at someone like Nationwide Building Society who if you take tracker with them will allow you to jump onto one of their fixed rates at any point, but remember you would have to pay any appropriate booking fees to them.
If you’re the sort of person that likes stable payments or you’re heading towards the top end of your mortgage budget go fixed, so you don’t have to worry.
Markus M | Jun 4, 2009 | Reply