Anyone know if the UK mortgage interest rates

[gsc1ugs]

will follow USA's 1/2 percent drop?>?

[Oregon]

If I knew that I would be making a fortune in the money markets.My guess is a 1/4percent drop.

[Adriana]

Not a chance ! The UK interest rates are set to rise to combat the strength of the pound against foriegn markets, it's fast becoming a non-tradeable currency and what with the Nortern Rock fiasco looks to have an unsettled next quarter.Plus, with house prices still on the increase, people are not taking on new mortgages so easily, the lenders (backed by the Bank of England) will see the need to make money from existing borrowers in the short term.Maybe in the new year, towards end February it may settle down.

[ADZE]

All the singes are that the Bank of England will cut the basic interest rates soon,not i am afraid by a half per cent but a quarter percent.Our economy and the £ are much stronger than the American $.

[tiggerbeeuk]

The Bank of England review interest rates the 1st Thursday lunchtime of the month.Whatever they decide to do , it is then upto your mortgage company to decide whether to pass on the change. If it goes up you can be sure the banks will increase rates. They may not be as willing to pass on reductions.

[d_andrews78]

Don't think so, the main reasons they give for the uping the rate in the past 18 months are to try kerb High street spending, and try to level out the growth of the housing market. I'm just your average bloke off the street but, if less people are able to afford a mortgage due the higher prices = more people with more flexible cash. Higher house prices are due to a high demand for affordable housing, but if the demand is so high the price will be driven up, So until the quota for houses are met, the prices will still grow, in turn that will leave more people off the property ladder with alot more flexible cash.