Having sat in an economics presentation yesterday by a senior Barclays economist – their house view is that UK base rate will rise in August by 50bps followed by another 50bps in November.

I don't suppose it matters what interest rates are.

It matters what banks and building societies are charging to correct their balance sheets!

Well my mortgage went down for a few cycles of the interest rate falling, but after a while my bank stopped passing on the savings.

So I am sure when the rate goes up they will absorb a few cycles of increase before they increase my payment.....


......or maybe not!

T

more for the benefit of those think about taking out fixes later this year.


i agree with your comments about pasing on the rates but how would HBOS,RBS, Baclays etc pay their city boys the big bonuses? they are really struggling without the top ups, i heard that some have had to sell their 3rd & 4th home to survive!

Interest Rates have been kept at 0.5% for the time being.

Much like Teeboy, my tracker had a floor limit which was exceeded quite some time ago, so a couple of rises shouldn't make too much difference. I review and change every couple of years to get the best deal (one of my TA collegues is also a mortgage broker) so I'm sure that we can fix again while it is low. It doesn't work out for everyone, given the "arrangement fee" but it does make sense if you can do it and save money at the same time.