Will interest rates go down then?

[dang65]

My fixed rate mortgage is due to end in a couple of months. Can't remember what rate it is off the top of my head, but expecting a big increase in monthly payments when it ends.

I keep reading comments about possible further interest rate cuts though, and that's giving me a tiny bit of hope. Is that likely to happen though, realistically? And will the lenders pass it on to the borrowers if it does happen?

[DS23]

<alf mode on>
They Go Up, Tiddly, Up, Up.
They Go Down, Tiddly, Down, Down.
They Enchant All The Ladies And Steal All The Scenes
With their Up, Tiddly, Up, Up
And They're Down, Diddy, Down, Down.
Up! Down! Flying Around.
Looping The Loop And Defying The Ground.
They're All, Rightfully, Kings!
Those Magnificent Men In Their Flying Machines.
They Can Fly Upside Down With Their Feet In The Air.
They Don't Think Of Danger. They Really Don't Care.
Newton Would Think He Had Made A Mistake.
To See Those Young Men And The Chances They Take.
Those Magnificent Men In Their Flying Machines.
They Go Up, Tiddly, Up, Up.
They Go Down, Tiddly, Down, Down.
They Enchant All The Ladies And Steal All The Scenes
With their Up, Tiddly, Up, Up
And Their Down, Tiddly, Down, Down.
Up! Down! Flying Around.
Looping The Loop And Defying The Ground.
They're All, Rightfully, Kings!
Those Magnificent Men In Their Flying Machines.
Those Magnificent Men In Their Flying Machines.
They Go Up, Tiddly, Up, Up.
They Go Down, Tiddly, Down, Down.
They Enchant All The Ladies And Steal All The Scenes
With their Up, Tiddly, Up, Up
And They're Down, Diddy, Down, Down.
Up! Down! Flying Around.
Looping The Loop And Defying The Ground.
They're All, Rightfully, Kings!
Those Magnificent Men, Those Magnificent Men,
Those Magnificent Men In Their…Fly…ing…
Ma-chines….
<alf mode off>

[DimPrawn]

My fixed rate mortgage is due to end in a couple of months. Can't remember what rate it is off the top of my head, but expecting a big increase in monthly payments when it ends.

I keep reading comments about possible further interest rate cuts though, and that's giving me a tiny bit of hope. Is that likely to happen though, realistically? And will the lenders pass it on to the borrowers if it does happen?

Interest rates will fall.

New tracker mortgages will track LIBOR and so will remain high. Lenders will not pass on cuts unless they have to. After all, they need to make up some serious profits and fast.

The best deals will require large deposits and immense arrangement fees.

So, better start looking at carboard boxes soon.

[AlfredJPruffock]

<alf mode on>
They Go Up, Tiddly, Up, Up.
They Go Down, Tiddly, Down, Down.
They Enchant All The Ladies And Steal All The Scenes
With their Up, Tiddly, Up, Up
And They're Down, Diddy, Down, Down.
Up! Down! Flying Around.
Looping The Loop And Defying The Ground.
They're All, Rightfully, Kings!
Those Magnificent Men In Their Flying Machines.
They Can Fly Upside Down With Their Feet In The Air.
They Don't Think Of Danger. They Really Don't Care.
Newton Would Think He Had Made A Mistake.
To See Those Young Men And The Chances They Take.
Those Magnificent Men In Their Flying Machines.
They Go Up, Tiddly, Up, Up.
They Go Down, Tiddly, Down, Down.
They Enchant All The Ladies And Steal All The Scenes
With their Up, Tiddly, Up, Up
And Their Down, Tiddly, Down, Down.
Up! Down! Flying Around.
Looping The Loop And Defying The Ground.
They're All, Rightfully, Kings!
Those Magnificent Men In Their Flying Machines.
Those Magnificent Men In Their Flying Machines.
They Go Up, Tiddly, Up, Up.
They Go Down, Tiddly, Down, Down.
They Enchant All The Ladies And Steal All The Scenes
With their Up, Tiddly, Up, Up
And They're Down, Diddy, Down, Down.
Up! Down! Flying Around.
Looping The Loop And Defying The Ground.
They're All, Rightfully, Kings!
Those Magnificent Men, Those Magnificent Men,
Those Magnificent Men In Their…Fly…ing…
Ma-chines….
<alf mode off>

What good taste you have DS23 - such a marvellous song.

I am counting upon you to keep alive the free sprit of Poetry and Song after my ascension to Solaris - any day now- the year of the Diamond Dogs.


For when I'm gone
And all the stars come tumbling down
A beam of light will fill your head
And you'll remember whats been said
By All the good men
This Worlds ever known

[DS23]

why thank you sir alf. if i had a flag i would surely wave it.

[ThomasSoerensen]

if you can borrow directly from BoE then you will benefit from interest rate cuts. If you cannot do this then that interest rate does not really affect your mortgage a lot.

[dang65]

if you can borrow directly from BoE then you will benefit from interest rate cuts. If you cannot do this then that interest rate does not really affect your mortgage a lot.

Hmm. Is there no legal issue with this? I mean, whenever interest rates go up by a quarter of a percent, there's instantly a load of media articles about the terrible hardship for mortgage payers, like the new rate is instantly applied to them. Is there really no requirement for lenders to adjust downwards as well?

[ThomasSoerensen]

Hmm. Is there no legal issue with this? I mean, whenever interest rates go up by a quarter of a percent, there's instantly a load of media articles about the terrible hardship for mortgage payers, like the new rate is instantly applied to them. Is there really no requirement for lenders to adjust downwards as well?

see how many US mortgages you can get at 1.5% which is the Feds current rate

[dang65]

see how many US mortgages you can get at 1.5% which is the Feds current rate

I'm not looking for a US mortgage.

Anyone actually know the answer to the question?

[DimPrawn]

I'm not looking for a US mortgage.

Anyone actually know the answer to the question?

My fixed rate mortgage is due to end in a couple of months. Can't remember what rate it is off the top of my head, but expecting a big increase in monthly payments when it ends. Yes, you are correct.

I keep reading comments about possible further interest rate cuts though, and that's giving me a tiny bit of hope. Is that likely to happen though, realistically? Yes, interest rates are going to fall - a lot.

And will the lenders pass it on to the borrowers if it does happen? No they won't. They are bankrupt, and need to make bigger profits. If anything, the cost borrowing will rise even with interest rates at 0%.

Can't make it any clearer than that?