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Bank cuts interest rates to 2%


Guest oa exile
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Guest oa_exile

Happy days as my present mortgage deal with the Natwest is up for renewing this month.

 

The best they could offer before was a FIXED 5 year @ 5.09% with no fee.

 

Any experts on this ? all advise welcome on what I should be looking to do :)

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Tough one.

 

5.09% over any historical 5 year period in the last 25 years would be exceptionally low.

 

Gut reaction would be to wait a week or so and see if any better deals appear - but that deal is VERY good (espeically the no fee element of it).

 

My personal view is that interest rates will shoot up in a couple of years as the government tries to cool a recovery.

 

Who knows though?

 

www.moneysavingexpert.com has a good mortgage forum that will be full of speculation based on questions very similar to the one you ask.

Edited by opinions4u
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Happy days as my present mortgage deal with the Natwest is up for renewing this month.

 

The best they could offer before was a FIXED 5 year @ 5.09% with no fee.

 

Any experts on this ? all advise welcome on what I should be looking to do :)

 

Or maybe, as is likely things like this will be reduced, prices will come down and the purse strings of the good old British people will be loosened slightly until the election and if the electorate decides to vote Comrade Brown in again (god help us if he and his corrupt monkey's get back in again) then they will just show complete disregard and contempt for the British people again by raising taxes again. Lets just hope that not everyone is as easily pleased as Mr Exile otherwise we will all be speaking Russian soon :grin:

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Guest oa_exile
Tough one.

 

5.09% over any historical 5 year period in the last 25 years would be exceptionally low.

 

Gut reaction would be to wait a week or so and see if any better deals appear - but that deal is VERY good (espeically the no fee element of it).

 

My personal view is that interest rates will shoot up in a couple of years as the government tries to cool a recovery.

 

Who knows though?

 

www.moneysavingexpert.com has a good mortgage forum that will be full of speculation based on questions very similar to the one you ask.

 

Thanks for that, you seem to have the same gut feelings that I have, lets see what then"New" offers will be B)

The fixed term I think will be my next move as I would assume it will move up at some point :) or should that be a :( if i dont react.

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Guest oa_exile
Or maybe, as is likely things like this will be reduced, prices will come down and the purse strings of the good old British people will be loosened slightly until the election and if the electorate decides to vote Comrade Brown in again (god help us if he and his corrupt monkey's get back in again) then they will just show complete disregard and contempt for the British people again by raising taxes again. Lets just hope that not everyone is as easily pleased as Mr Exile otherwise we will all be speaking Russian soon :grin:

 

I'm not pleased with the situation as I am not foolish enough to realise that it will be given in one hand and taken out of the other.

Would kick myself though if I didnt take at least the mortgage rate opportunity.

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Thanks for that, you seem to have the same gut feelings that I have, lets see what then"New" offers will be B)

The fixed term I think will be my next move as I would assume it will move up at some point :) or should that be a :( if i dont react.

Fixed rate mortgage pricing is usually linked to LIBOR + profit for bank - if you see it moving down, it's a sign that better fixed mortgage deals are coming.

 

http://www.thisismoney.co.uk/libor

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I'm not pleased with the situation as I am not foolish enough to realise that it will be given in one hand and taken out of the other.

Would kick myself though if I didnt take at least the mortgage rate opportunity.

 

I just find that anything banks do to help its customers should be greeted with warning signs straight from the off. All banks make out that they are there to make their customers lives easier, which is frankly just not true. Like the majority of MP's in Liarbour they are only there make money for themselves. Im not a mortgage expert but hope any deal you get is for the best as personally i wouldnt trust this government or any bank to do what they say they will do and stick to it. IMO whatever short term gains they offer now, you will end up paying hand over fist sooner rather than later.

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Guest oa_exile
I just find that anything banks do to help its customers should be greeted with warning signs straight from the off. All banks make out that they are there to make their customers lives easier, which is frankly just not true. Like the majority of MP's in Liarbour they are only there make money for themselves. Im not a mortgage expert but hope any deal you get is for the best as personally i wouldnt trust this government or any bank to do what they say they will do and stick to it. IMO whatever short term gains they offer now, you will end up paying hand over fist sooner rather than later.

 

Agree with what you are posting BUT the bit in bold is the reason I want to make sure I capitalise now whilst the iron is hot.

 

IF I take the 5 year deal then I can at least look forward to the next five years knowing that I took the opportunity as nothing is more ceratin the the Interest rates will go up again (when is the ?) and maybe go up big time for many of the above reasons that you,opinions4u and I are all "Thinking".

Edited by oa_exile
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I'd be very surprised to see the base rate go up until the banks start lending again, and would expect the variable commercial rates to reduce when they do as banks start actually want your custom. Fixed rates are a different matter though, if you wait until the good times start to roll, the long term rates will go up pretty quickly, by offering cheap deals now they are betting on a long recession. If it looks like a really good deal to you now then I'd take it, at least you know you are doing well compared to the previous deal and aren't going to get a big kick in the balls down the line.

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