Uncle Spielberg
Well-known member
I feel I ought to warn my friends that interest rates WILL go up next month on 10th May. Interest rates were 3.50% in the Summer of 2005 and since then there have been 7 seperate rises of 0.25%. Inflation is well over the 2% target at 3.1% and the Dollar is weak and therefore it is a guarantee rates will go up and it is possible I feel they may go up by 0.50% in May.
If you are on a variable rate or coming to within 3 months of a present rate it is advisable to look into a 2 year fixed rate as they are being pulled across the board and re lauched at high rates.
Your friend
Uncle Spielberg
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BBC News
Lenders pull fixed-rate mortgages
The cost of mortgage loans are set to rise
Lenders have started to withdraw their fixed-rate mortgage products in preparation for a possible Bank of England (BoE) interest rate rise.
Alliance & Leicester pulled its fixed-rate deals on Wednesday, and the BBC has been told that two other major mortgage lenders will now follow suit.
Lenders often withdraw mortgages when interest rates rise.
They base their borrowing costs on money market rates, which in turn are linked to the BoE's rate.
Price growth
On Wednesday, the UK inflation rate rose to 3.1%, which was higher than expected.
Many analysts now believe that a rise in UK interest rates in May is inevitable, with that feeding through into the money market rates, also pushing them higher.
This will result in higher costs for lenders and they will pass these on to consumers.
"Many lenders are currently offering rates below the money market rate and this cannot go on forever," said Roy Hardy, a mortgage broker at Cobalt Capital.
He added that swap rates, the rate at which money is bought and sold on the market, "have been pushed up because of speculation over BoE rates and this means it is more expensive for mortgage lenders to buy money on the market".
Alliance & Leicester said that it will announce its new fixed-rate mortgages next week.
If you are on a variable rate or coming to within 3 months of a present rate it is advisable to look into a 2 year fixed rate as they are being pulled across the board and re lauched at high rates.
Your friend
Uncle Spielberg
------------------------------------------------------------------------------
BBC News
Lenders pull fixed-rate mortgages
The cost of mortgage loans are set to rise
Lenders have started to withdraw their fixed-rate mortgage products in preparation for a possible Bank of England (BoE) interest rate rise.
Alliance & Leicester pulled its fixed-rate deals on Wednesday, and the BBC has been told that two other major mortgage lenders will now follow suit.
Lenders often withdraw mortgages when interest rates rise.
They base their borrowing costs on money market rates, which in turn are linked to the BoE's rate.
Price growth
On Wednesday, the UK inflation rate rose to 3.1%, which was higher than expected.
Many analysts now believe that a rise in UK interest rates in May is inevitable, with that feeding through into the money market rates, also pushing them higher.
This will result in higher costs for lenders and they will pass these on to consumers.
"Many lenders are currently offering rates below the money market rate and this cannot go on forever," said Roy Hardy, a mortgage broker at Cobalt Capital.
He added that swap rates, the rate at which money is bought and sold on the market, "have been pushed up because of speculation over BoE rates and this means it is more expensive for mortgage lenders to buy money on the market".
Alliance & Leicester said that it will announce its new fixed-rate mortgages next week.
:mexican: