Interest Rates to fall today

[Uncle Spielberg]

Interest rates are a near certainty to fall today. Almost as much a certainty as a Spielberg racing tip. Bank base rate will stand at 5.25%. US interest rates have fallen 1.25% in the last month to stand at 3.0%. Its good news for people on Bank tracker rates as they will get the benefit immediately, discounted and variable rate borrowers will benefit but with a delay and maybe not the full fall as lenders drag their heels and chip it away. Fixed rate borrowers will stay as they are.

I expect rates to chip away this year with another fall in June and another in September to bring rates down to 4.75% by the year end.

This will soften the housing market slowdown and I expect house prices to be static or a slight fall only, talk of crashes and 40% fall's are rubbish and irresponsible talk from wannabees who want to get in the papers.

A tracker rate is a good option now and if you want total flexibility go for a tracker with no penalty ties.

My number can be found in the BHAFC match programme under Friends of the Albion.

Kind Regards.

Uncle Spielberg's Monthly Mortgage Watch

 

[REDLAND]

I'm so glad I didn't remortgage to a fixed rate in Dec (5 year as well)

The two year tracker recommended by your good self US, looks right on the money

 

[Race]

Yay! We're on a tracker so good news.

 

[Uncle Spielberg]

Most people prefer a 2 year deal and to re look at the market every couple of years.

 

[Bars Mar]

Seems Like Uncle Spielberg Knows What He's Talking About Again.

 

[Uncle Spielberg]

Cheers mate.

 

[ack]

Still got 2yrs left on me 5yr fixed,so hope they go a bit lower and stay there

 

[beorhthelm]

im glad you here to give us such insight into the financial world in case we missed it on every news channel from GMTV to Radio 4 in the hours before. :yahoo:

as for future rate cuts, they are heavily dependant on inflation, if it stays high or creeps up they wont be any more than another 0.25. leaving it till June does seem sensible.

 

[Papa Lazarou]

Our 5 year fixed deal ends in June, so I'd like to see a couple of drops before then... especially as we're currently enjoying 4.29% !!

 

[Gully]

I would agree to a fair extent with what US posted, I expect there to be a rate cut today of a quarter of a point, back down to 5.25%. However, I believe the next cut will almost certainly be in May, possibly as early as April but this is dependant on key economic factors such as the underlying rate of inflation and to some extent what effect the reduction on the other side of the Atlantic makes to World economies. I am fairly certain that there will be at least one more cut this year, again by a quarter of a percent, if this takes place as early as September then there is a slim possibility of another being made before the end of the year to take us back to 4.5%.

 

[Badger]

Good news, I'm just about to take out a loan

 

[Woodchip]

Wow, I would never have thougt interest rates would fall. Thanks for the news US!!!

 

[Uncle Spielberg]

I know its not a bold prediction more a market watch and plug for business really !.

 

[Woodchip]

I know its not a bold prediction more a market watch and plug for business really !.

Fair enough. Nothing like self promotion.

 

[seagullsovergrimsby]

The RPI doesn't measure the true inflation rate - food price inflation is about 8% , council tax is going up by 4% , petrol prices up again in April , electricity and gas prices rising by 15% . Some of the items in the "basket" that is used to establish the RPI and RPI-X are only purchased infrequently. Another factor that will affect falling interest rates is how pay rises are awarded this year.

 

[Gully]

In the public sector, one of the major employers in the country, they appear pegged to approximately 2% which is well below the rises that you mention in the daily costs of living. The Government has tried to use the public sector to encourage the private sector to exercise restraint in their rises and if anything move away from the culture where we have annual rises, possibly linking those in future to increases in productivity or cost savings...it is a dangerous path to travel.

 

[seagullsovergrimsby]

What that all means is your perceived standard of living is falling. In every ones mind at the moment is how they are going to pay all those bills as there will be a shortfall if wage inflation lags behind general inflation. Anyone who is coming to the end of a fixed rate mortgage deal imminently might be better off switching to a tracker which the ever helpful Uncle Spielberg can give you impartial advice on.

 

[Arrid]

Interest rates are a near certainty to fall today. Almost as much a certainty as a Spielberg racing tip. Bank base rate will stand at 5.25%. US interest rates have fallen 1.25% in the last month to stand at 3.0%. Its good news for people on Bank tracker rates as they will get the benefit immediately, discounted and variable rate borrowers will benefit but with a delay and maybe not the full fall as lenders drag their heels and chip it away. Fixed rate borrowers will stay as they are.

I expect rates to chip away this year with another fall in June and another in September to bring rates down to 4.75% by the year end.

This will soften the housing market slowdown and I expect house prices to be static or a slight fall only, talk of crashes and 40% fall's are rubbish and irresponsible talk from wannabees who want to get in the papers.

A tracker rate is a good option now and if you want total flexibility go for a tracker with no penalty ties.

My number can be found in the BHAFC match programme under Friends of the Albion.

Kind Regards.

Uncle Spielberg's Monthly Mortgage Watch

Aren't base rate products already priced a good 0.4/0.5 higher than fixed rates ??

 

[Uncle Spielberg]

Abbey are offering a 2 year fixed remo at 5.44% and a 2 year tracker remo at 5.73% which will be 5.48% in 2 hours, the fees are often higher on the fixed rates.

People had 2 year fixed rates in 2006 at 4.3% so they will be in for an inevitable payment shock but if they switch to a 2 year tracker at 0.2% above by the tail end of this year they may well be on around 4.9% which will lessen the shock.

Abbey have a great flexi product at 5.99%, 5.74% shortly with no ties and a drawdown , free survey and free legals for remo's

 

[Napper]

my 2 year fixed due to expire in the june , looking good for me i think