The fiddler's elbow...
Posted on 21 June 2012 by
Good lord. The mortgage market really is the proverbial fiddler's elbow. The days when one rate broadly governed the whole of the market seem as distant as last week's holiday. These days you need to be aware of a great number of different factors that can influence the pricing of mortgages.
It's no secret that bank rate has remained as routed to the floor as a dancer at a disco, but there has been talk of it going even lower. Disco could well become the limbo. Of course, should this happen then those on trackers, assuming you don't have a collar, will feel the benefit, but don't bank on the same thing happening to mortgages linked to a lender's Standard Variable Rate (SVR). Banks are finding their margins again and any event that might help do this will be popular with them. Nothing is certain anymore (that would make a good strap line for a film right).
Yet, as well as bank rate, and lender's own SVRs, there's Libor, lender capacity, lender service levels and what day of the week it is to consider before choosing a mortgage. (Okay, I made the last one up, but it does feel that way sometimes). All of these can send rates up or down.
The point here is that mortgage rates can go anywhere at the moment. Getting advice is just so important. You would of course expect me to say that. Don't take my word for it. Take a look in the pages of the nation's money sections in the press and see what they say.
One final thought. If fixed rates are your penchant then it looks like party season is here. Have a read of Ray Boulger's latest blog on why some recent developments could be a game changer for the market. It's good stuff.
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