Posted on: 28th Mar, 2011 10:49 am
On the last 4 Occasions the BOE dropped the interest rate my mortgage company did not adjust the rate of their repayment mortgages.
When rates eventually rise will they immediately hike up the iterest rate?
When rates eventually rise will they immediately hike up the iterest rate?
Hi Mporcu!
Welcome to forums!
I don't think the rates will rise immediately. You have a contract with the lender which states the rate of interest you need to pay him. The lender cannot suddenly increase your payments.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
I don't think the rates will rise immediately. You have a contract with the lender which states the rate of interest you need to pay him. The lender cannot suddenly increase your payments.
Feel free to ask if you've further queries.
Sussane
Hi Mporcu55,
Welcome to Mortgage fit,
Whether do you have fixed interest mortgage or a floating one..???If it is a floating one then bank may change the rate at its discretion whenever there is some change in interest rates from the central bank..
If you are having fixed interest rates then there is no question of changing the interest rates even though there is some change from the central bank....Because already you have signed a contract with the bank and had fixed the interest rates despite of any circumstances the bank may have to go...
Feel free to ask any further query if you have....
DIPA
Welcome to Mortgage fit,
Whether do you have fixed interest mortgage or a floating one..???If it is a floating one then bank may change the rate at its discretion whenever there is some change in interest rates from the central bank..
If you are having fixed interest rates then there is no question of changing the interest rates even though there is some change from the central bank....Because already you have signed a contract with the bank and had fixed the interest rates despite of any circumstances the bank may have to go...
Feel free to ask any further query if you have....
DIPA
As convoluted as that last is, it's correct. If your rate is currently fixed, that means it won't change, regardless of movement in Prime or any other rates. If it's adjustable, then it will change up or down, based on the particular index to which it is tied.
