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The point is that they have already come down in the wholesale market, banks just haven't passed it on yet.
I understand that, but they don't have to pass it on. And then interest rates are predicted to keep going up, I'm not sure what incentive they have to do so. Maybe if the housing market slows there will be more competition for customers which might make them re-evaluate things?
Edit: I see above some providers have made rate reductions
Famous last words but I think it's more likely we get an emergency rate cut due to a crashing economy than the Bank staying the course on tightening. A really warm European winter is bailing us out slightly on the energy side.
I'd be really surprised if a rate cut so large as to make a material difference would be possible with inflation running at ten zillion percent. It would take a disaster of some magnitude I think for that to happen.
Howard-
Market is pricing in that the BoE will hike a further 100 bps to 4.5% (from 3.5%). Banks are layering in some extra conservatism on top of that / taking advantage of a dislocated market to charge more / don't want to lend at 80% LTV today because it could be 95% in a year's time.
I just find it hard to believe that the Bank will keep hiking through Q2 2023 even as inflationary energy pressures recede and unemployment starts ticking up (reducing worker bargaining power and wage pressures) as the economy crashes.
For a small / low LTV mortgage I would be really tempted to "white knuckle" it for the next 6 months on a tracker. If rates of 6% plus would be existential then fix ASAP.
NickCJ
The point is that they have already come down in the wholesale market, banks just haven't passed it on yet.
Famous last words but I think it's more likely we get an emergency rate cut due to a crashing economy than the Bank staying the course on tightening. A really warm European winter is bailing us out slightly on the energy side.