Interest Rates

[tenthirty]

Hi all,
It's time for me to renew my mortgage rate as my yearly fixed rate has expired.
Are we likely to see a fall in interest rates over the coming year?
My lender is offering the following rates:
Tracker Variable ECB + 1.25% 5.250 %
Fixed to 31 March 2009 5.390%
Fixed to 31 March 2010 4.890%
Fixed to 31 March 2011 4.990%
Fixed to 29 March 2013 4.990%
Fixed to 30 March 2018 5.590%
Variable Rate 5.440%
The rate in red is coming out cheapest, but that's fixed for 2 years. Are we likely to see a fall withing two years?
Many Thanks for your time and help.

 

[ClubMan]

Are we likely to see a fall in interest rates over the coming year?

...

Are we likely to see a fall withing two years?

Pure guesswork. Nobody knows. Review the many existing threads on the whole fixed versus variable/tracker rate question. And shop around as widely as possible for the best deal on offer for your specific circumstances. Don't restrict yourself to a single lender.

 

[LDFerguson]

Hi all,
It's time for me to renew my mortgage rate as my yearly fixed rate has expired.
Are we likely to see a fall in interest rates over the coming year?
My lender is offering the following rates:
Tracker Variable ECB + 1.25% 5.250 %
Fixed to 31 March 2009 5.390%
Fixed to 31 March 2010 4.890%
Fixed to 31 March 2011 4.990%
Fixed to 29 March 2013 4.990%
Fixed to 30 March 2018 5.590%
Variable Rate 5.440%
The rate in red is coming out cheapest, but that's fixed for 2 years. Are we likely to see a fall withing two years?
Many Thanks for your time and help.

Looks like an ICS or Bank of Ireland mortgage.

In mathematical terms, for the Tracker Variable to work out cheaper than the two year fixed, the ECB would need to drop the base rate by an average of over 0.36% over the next two years. So the question is not - "will the ECB drop rates in the next two years" but "will the average ECB rate fall by more than 0.36% over the next two years".

As Clubman says, this is speculation at present.