How low will mortgage rates go?

This is Money Podcast

This is Money

Business News, Business, Investing, News

4.1 • 650 Ratings

🗓️ 16 August 2021

⏱️ 55 minutes

🔗️ Recording | iTunes | RSS

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Summary

How low will mortgage rates go? The lowest two-year fixed rate has been cut to 0.83 per cent and five-year fixed rates are available at 0.99 per cent.

That’s cheap money – and while these super low rates are only reserved for those with the biggest deposits, it’s clear that the mortgage price war is back on.

The question is will rates keep falling and get cheaper still?

Some experts say believe they won’t and this is the floor but others suggest they could come even down all the way to 0.5 per cent.

On this week’s podcast, Georgie Frost, Helen Crane and Simon Lambert look at what’s driving mortgage rates down and the house prices up and whether it’s ever worth jumping ship to a potentially cheaper deal from an existing home loan?

Also on this week’s show, are you a property snooper, spying on friends, relatives and colleagues’ house prices and homes?

Plus, how to avoid getting too emotionally attached to your investments and is it worth tracking down DIY investing platforms and apps that offer fractional share dealing?

Transcript

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0:00.0	Welcome to This Is Money Podcast. I'm Georgie Frost and alongside me and editor Simon Lambert. Today is
0:05.6	Assistant Personal Finance editor Helen Crane and coming up. The mortgage battle steps up with rates
0:11.1	continuing to fall. When will they hit bottom and could you save by switching? Meanwhile,
0:16.7	you are super snooper? Just why are we so interested in what other people have paid for their houses?
0:23.2	Also today, Grafias Vodafone, but what do you're introducing roaming charges?
0:31.2	What can you do about it if you're heading abroad? We also ask if you're too emotionally attached to your investments. We talk behavioural
0:38.8	economics plus fractional share should you invest and why music rights are such big business.
0:44.6	Don't be getting stay up to date with all the latest breaking money news. Just go to this ismoney.com
0:48.8	UK or download the app. But first, but first, the mortgage battle continued this week as
0:54.7	HSBC joined Halifax in coming out with some super low two-year fixed deals. We're talking
1:01.2	in the 0.8 to 0.9 region here. They are now multiple deals available at around that figure.
1:08.3	So, as you would expect, they're reserved only for those with a hefty
1:11.2	deposit or equity, but it's led to questions over how much further rates could fall. Some brokers
1:16.7	are suggesting they could go as low as 0.5%. So this is money. He's taken a look at the market,
1:23.1	spoken to the experts. And before we get to the nitty gritty with Helen, why are we here, Simon?
1:30.5	Well, we're in a situation where as the coronavirus crash hit and lockdown arrived,
1:38.9	it was imminent actually, before it arrived last year. The Bank of England slashed interest rates, and it wasn't alone.
1:47.1	The central banking glitterati, I shouldn't call them the Illuminati, I nearly did,
1:52.8	the central banking glitterati decided that the thing to do again in the face of crisis was to slash
1:58.4	interest rates and also to lob a load of money at the financial system in the face of crisis was to slash interest rates and also to lob a load of money at the
2:02.1	financial system in the form of quantitative easing and other such unconventional measures.
2:09.4	Now, what that is aimed at doing is dragging down interest rates that banks offer people,
	...

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