Jump to content
House Price Crash Forum
loginandtonic

M S E Suggests To Subscribers "libor Up, Fix Rates Now"

Recommended Posts

OK, along same lines as Ash in his thread, credit to MSE for putting this in their newsletter

Why fixed rates are likely to rise. Fixed deals have little to do with UK base rates. Instead, lenders set them based on 'swap rates' which are the City's long-term interest rate forecast. In the last few days, these have rocketed. Eg, 2-year swap rates were 1.98% mid-May, they're now 2.48%; 3yr swaps were 2.49% they're now 3.11%. And this is what the banks pay, so customers' rates could jump by even more.

Share this post


Link to post
Share on other sites
OK, along same lines as Ash in his thread, credit to MSE for putting this in their newsletter

Does this suggest that the interest banks pay on our savings will go up also.?

Share this post


Link to post
Share on other sites
Does this suggest that the interest banks pay on our savings will go up also.?

If they can't get it from the market or in barrow loads straight from the BOE then yes they will try and attract savers.

Share this post


Link to post
Share on other sites

Damn, wish I had one of those 'thumbs up Martin' smilies here :P

Full marks to him though. Seems like the myth of deflation is well and truly busted in the mainstream.

Share this post


Link to post
Share on other sites
Does this suggest that the interest banks pay on our savings will go up also.?

if you're asking me - hmm it might do, i say might rather than will, because they are a greedy lot looking to make max margin. the clue that some banks/bs think they might have to pay more soon is that they are trying to get business now and lock savers in for 6 months to 2 yrs for better rates than most rivals'. that either means the libor up is going to put pressure OR that BoE will have to raise, after all zirp is a ridiculous mirage like buy now pay nothing until next year nonsnese at a furniture shop - you always pay more later for that delayed remittance.

i had thought boe base would have been up already as i posted before when i said june or july, but brown/king/blanchnuts have torn up the rule book so...?

Share this post


Link to post
Share on other sites

Years ago, in another life (BHPC), Libor rates were my only forward indicator, both of mortgage rates and if sustained: HPI.

This really has been Bear Day!

Share this post


Link to post
Share on other sites

what has suddenly reversed the libor northwards? much to the surprise of many of us (well, me) it went down quicker and further than expected. so what has been the trigger? drugs worn off? govt debt purchase appetite fading? the tartan clunking fist hanging on to power?

Share this post


Link to post
Share on other sites
OK, along same lines as Ash in his thread, credit to MSE for putting this in their newsletter

per-leassee!! MSE! my contrary indicator alert is sounding loud ;) I also heard 10pct next year mentioned today!

it's your typical 'get a fix now before it's too late' bull trap....I have a nice chart if anyone wants to see.

The panic to fixed is ridiculously over-done and at the end of a massive bond move, it only serves one purpose - profit on the margins for the banks, they're not silly you know!

Share this post


Link to post
Share on other sites

Didnt MSE say fix last time rates went up...and subsequently fell. OK there isnt much downward scope now, but ive heard some say the Fed among others could conspire to drive people into bonds again and drive down yields.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   295 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.