Will intrest rates be up or down in 6-12 months time?

mark260171

Hi guys

I know no-one can predict exactly what will happen to the bank of england interst rate but........

Is the general consensus that it will be higher or lower in 6-12 months time?

I heard on the radio ( Radio 4 ) that it may be as low as 3.5% by December 2009

Or in this current financial climate would that just be silly to think and will banks / BS's ramp up their mortgage deals now ?

So with this info it will give me an idea to either stay with All+Leicester 5% +.75 tracker or look for another deal to fix

Atmo I have £56k left on 17.5 years

Any advice is apprecieated

Thanks in advance

Ian_Griffiths_Halifax

Are you tied in with a redemption penalty to A & L? If not, then I'd stay on that deal for now. Fixed rates may be on the rise, but the Base Rate may drop a little (I can't see 3.5% myself), but change to a Fixed Rate later if you get worried.

ad9898_3

It may well be down to 4% or so (can't see this myself either) but they bare little relation to mortgage rates these days anyway, the banks will use any drop to bolster their balance sheets

arkie

0.75% tracker is a good rate (assuming its a Bank of England tracker)
If interest rates fall, dont bet on mortgage rates following, the BOE rate and mortgage rates hardly have any relevance to each other if any at all. What sets most of the mortgage rates is LIBOR which is the rate Banks lend to each other at, this rate has been rising over the last 2 week.