Interest Rates Today

[Uncle Spielberg]

There is chance interest rates could fall by 1% to 2% today but my guess is 0.5% as the 1.5% drop has not had time to kick in yet. Anyone on an existing tracker rate will benefit from 1/1/09 and it depends on your differential as to who will pay the lowest. The best ones I did were the middle of last year when I arranged a few 0.46% below rates until the end of next year with no collar.This means they will be paying 1.56% possibly. It is possible they could pay 0% next year if the rate falls to 0%. New tracker rates are already aroujnd 2% above Bank base rate and will probably go to 2.5% above or even 3% above soon.

Fixed rates will not be affected and new fixed rates will not come down that much. It is highly unlikely fixed rates would ever fall below 3-3.5% for any length of time even if Bank rates fall to 0% and they are based on the Libor rate which is and will be much higher.

Good news for borrowers , very bad news for savers and those relying on an income from their investments in an account linked to interest rates.

This thread is an opinion and not fact.

 

[Bozza]

There is chance interest rates could fall by 1% to 2% today but my guess is 0.5% as the 1.5% drop has not had time to kick in yet. Anyone on an existing tracker rate will benefit from 1/1/09 and it depends on your differential as to who will pay the lowest. The best ones I did were the middle of last year when I arranged a few 0.46% below rates until the end of next year with no collar.This means they will be paying 1.56% possibly.

I'm not sure I'd trust a mortgage advisor who calculated 2.0% - 0.46% as being 1.56%.

 

[Superphil]

Got a new Tracker Mortgage about 3 months ago, it's been great so far

 

[Uncle Spielberg]

I'm not sure I'd trust a mortgage advisor who calculated 2.0% - 0.46% as being 1.56%.

 

[Uncle Spielberg]

Got a new Tracker Mortgage about 3 months ago, it's been great so far

Probably 0.79% above ?. Did well to get in 3 months ago as the best ones are now around 2% above and being withdrawn as we speak.

 

[Bozza]

We're on base - 0.4% as I said last time we did this, so currently on 2.6%.

It might actually be a tad lower, 2.59 or 2.58% possibly.

 

[Uncle Spielberg]

Check the collar on the rate as some lenders did a clause that even if Bank base arte falls to 0% your rate would never fall below 3% for example.

 

[Uncle Spielberg]

We're on base - 0.4% as I said last time we did this, so currently on 2.6%.

It might actually be a tad lower, 2.59 or 2.58% possibly.

Probably the same ones I did, Halifax Plc ?.

 

[Bozza]

Check the collar on the rate as some lenders did a clause that even if Bank base arte falls to 0% your rate would never fall below 3% for example.

I did last time we did this subject - there is no minimum rate.

 

[Bozza]

Probably the same ones I did, Halifax Plc ?.

A&L.

 

[Hannibal smith]

My Fix runs out in July next year. What happens then? Will I revert to the base rate which is clearly significantly lower than when I fixed it or is that just wishful thinking?

 

[Uncle Spielberg]

My Fix runs out in July next year. What happens then? Will I revert to the base rate which is clearly significantly lower than when I fixed it or is that just wishful thinking?

At the moment you would proably be best to stay on their variable rate. Variable ratesare around 5% now and could be 1% by nuext summer. There will come a point when future Bank base rate reductions will not be passed on despite the government pressure and the lender needs a profit margin. IE a doubt if variable rates will ever fall below 3%. There will come a point when the economy will turn and Bank base rates could go up as quickly as they have come down, ie 2% up in 1 month. Its a matter of timing in my opinion to jump from a lenders variable rate to a fixed rate for 2,3 5 years. If there are such fixed rate at around 3.5% the question is when do a leave my variable rate and get a fixed rate. I expect to have 40-50 clients on the variable rate by next Summer and will keep them updated. Bank base rate will not be at 3%or lower for ever.

 

[Uncle Spielberg]

Should be variable rates are 5% now and could be 4% by next summer.

 

[Superphil]

Probably 0.79% above ?. Did well to get in 3 months ago as the best ones are now around 2% above and being withdrawn as we speak.

0.74%, I think we probably got it the day before it all went "up in the air"

 

[Uncle Spielberg]

Well done.

 

[aftershavedave]

1% drop is the likeliest outcome.

 

[Uncle Spielberg]

£ 5 bet Afters, I say 0.5% , you say 1%.

 

[aftershavedave]

£ 5 bet Afters, I say 0.5% , you say 1%.

do you have £5 these days unc?

 

[El Presidente]

I paid mine off five weeks ago, so BOO to mortgage cuts. Why can't we bring back the GLORY DAYS of Mrs Thatch and 15% interest rates?

 

[Uncle Spielberg]

do you have £5 these days unc?

I have 250 , 2p's in a jar somewhere.