Mortgage rates, whats the predictions?

[Taipan]

My Daughter is moving house and due to delays etc her previous mortgage offer has expired. She is looking at her new options but isnt sure how long to tie in for, 2, 3, or 5 years. Given the flux of the markets at present i'm thinking 2 years would be sensible, as the rates should come down again soon? But then I don't really know much about these things. What do you financial gurus think she'd be best to do?
TIA

[cheb]

How much of a difference in month's payment between the rates? Is it worth fixing it for 5 years and having that predictability?

[Nordboy]

I've just changed mortgage and chose to fix for 2 rather than 5. My 'theory' is that hopefully interest rates will peak next year, then start to fall in the following year.

It's all a bit of a crapshoot though for me. Certainly with my total lack of understanding of the financial markets

[Taipan]

How much of a difference in month's payment between the rates? Is it worth fixing it for 5 years and having that predictability?

She had done that on her previous deal which was under 4% iirc, but then the chain broke and everyone had to start again. The difference is about £75 between 2 and 5 years but the rate is over 5%.

[gremlin]

Fix in the short term. There's still vol in the markets but both the Fed and ECB are making noises of a 200bps drop in 24/25.

Now fuck off. I'm preping veg for tomorrow.

[Mr. Dazzle]

I hope that Turkey prepped itself at that price.

[Cousin Jack]

[Old codger mode] Historically 5 - 7 % is about par for the course. Rates below 5% were an anomaly, just like the 15% us oldies survived. [/old codger mode]

[Taipan]

Fix in the short term. There's still vol in the markets but both the Fed and ECB are making noises of a 200bps drop in 24/25.

Now fuck off. I'm preping veg for tomorrow.

No idea what any of that means, but I'm guessing it means take the 2 year deal? I know you know, so thank you.

[MyLittleStudPony]

I am not a guru (far from it). I would consider trackers, especially as the fees and other costs might be more reasonable. Fwiw.

I watch interest rate and house price predictions with some interest, but not mortgages specifically.

[MyLittleStudPony]

The almost daily changes in the bond markets also suggest interest rates are on the way down IMO. I wouldn't get a fixed mortgage right now unless it was fixed at a pretty low rate.

[Count Steer]

The almost daily changes in the bond markets also suggest interest rates are on the way down IMO. I wouldn't get a fixed mortgage right now unless it was fixed at a pretty low rate.

Interesting. Bonds seem to be on the up. Hallelujah! Still got a way to go to recover from Trussonomics but, we're getting there....slowly.

[Mussels]

I could write a long(er) post and bore people to death, so I'll try to keep it short and in the vernacular, I'm also just an electrician on the internet, so take it with a pinch of salt...

I personally wouldn't fix.
The Bank of England don't have the minerals for anything serious, they'll just drag it out and hope inflation gets bored and goes away.

Definitely ignore what the FED are doing and ignore what the BoE say.

My daughter is buying now and I'm going to help my boy to buy next year just to get him on the ladder, I'm advising them to get a plain old tracker for now, but I do that safe in the knowledge that I can afford to be wrong and cover them if there is another macroeconomic event that sends the world crackers.

I watch behaviour, not words and unless something significant happens then I don't see the BoE suddenly growing a spine and throwing a big raise into the mix. It'll be sticky for a bit but they've been clear that they'll try to lower rates asap, doing it before the end of next year is a mistake but they haven't got anything else right in the last decade so they might.

If you need to fix for security so you know for sure what your liability is each month then I'd do it for just a year, or two at max.
Actually I'd create a hedge, but that's too much for here...

My fixed rate finishes soon and if I don't fix again I'll go onto the standard 8% rate, it's pretty pricey not to fix.
My broker has sent some alternatives but working out the real savings of a fix after fees and commission are included are a tedious thing I haven't got around to yet.

[ZRX61]

Downwards.. until the next election over here as the Democrats & the Fed are manipulating the interest rate & stock market to make it appear that Biden has the first fucking clue what he's doing.

[Count Steer]

Just out of interest like...I walked past a newspaper display 10 mins ago and the I front page was all about mortgage companies cutting rates in a battle to secure market share. So, it looks like rates are dropping. How far and for how long? Dunno.

[Greenman]

Just out of interest like...I walked past a newspaper display 10 mins ago and the I front page was all about mortgage companies cutting rates in a battle to secure market share. So, it looks like rates are dropping. How far and for how long? Dunno.

If that's the case they are just showing themselves up even more as being greedy fuckers as if they can afford to lower the rates then they could of afforded to set a lower rate initially.

[Count Steer]

Just out of interest like...I walked past a newspaper display 10 mins ago and the I front page was all about mortgage companies cutting rates in a battle to secure market share. So, it looks like rates are dropping. How far and for how long? Dunno.

If that's the case they are just showing themselves up even more as being greedy fuckers as if they can afford to lower the rates then they could of afforded to set a lower rate initially.

Yes dear.

[Taipan]

Thanks all. She went for a 2 years fixed deal which suits their budgeting.

[Greenman]

Just out of interest like...I walked past a newspaper display 10 mins ago and the I front page was all about mortgage companies cutting rates in a battle to secure market share. So, it looks like rates are dropping. How far and for how long? Dunno.

If that's the case they are just showing themselves up even more as being greedy fuckers as if they can afford to lower the rates then they could of afforded to set a lower rate initially.

Yes dear.

It's true though innit!

[Saga Lout]

Just out of interest like...I walked past a newspaper display 10 mins ago and the I front page was all about mortgage companies cutting rates in a battle to secure market share. So, it looks like rates are dropping. How far and for how long? Dunno.

If that's the case they are just showing themselves up even more as being greedy fuckers as if they can afford to lower the rates then they could of afforded to set a lower rate initially.

It's the Bank of England that controls the interest rates in their attempts to control inflation. Inflation that was caused by the government.

So if you want to blame somebody, at least have the sense to blame the right people. The mortgage companies are just following the market.

[Mr. Dazzle]

Inflation that was caused by the government.

Not if you ask Potter it wasn't!