Will interest rates be cut still further in the UK?

sb44

Just received a letter from the Chelt and Glouc showing our revised mortgage payment.

I can't believe how much it has been reduced in since November.

I'm not sure what the average mortgage rate is, ours is now 4%.

Does anyone think the rates will come down further in the near future?

ad44downey

Probably. However in a few years' time when Gordon Brown's gamble fails we'll have interest rates more like 10 or 15%

sb44

ad44downey wrote: »

Probably. However in a few years' time when Gordon Brown's gamble fails we'll have interest rates more like 10 or 15%

That's what I was thinking.

Hopefully the endowment is due to pay off our mortgage in 2010, fingers crossed (green letter says it should but that is as it stands now).

HammersFan

I think we'll be down at BoE 1% for a while. I have set myself a target of a 5-year fix at 4%, which I think is only a couple of months away...because I too think that there will be a big sting in the tail when rates have to rise. I think there's a possibility that the scramble for low fixed-rates could be linked to the end of house prices falls.

sb44

I remember when interest rates were last at 15% (I think it was about that) in the 80's.

I pity anyone who has a big mortgage if the interest rates go up to those figures again.

We have only a really small mortgage to pay off and I have just worked out that it would increase to just less than £400 a month at those high rates, that is for a 40k mortgage. Most people have at least twice if not three times more than that, so their payments would go from £300ish to just under £1200!!! OMG.

beecher

HammersFan wrote: »

I think we'll be down at BoE 1% for a while. I have set myself a target of a 5-year fix at 4%, which I think is only a couple of months away...because I too think that there will be a big sting in the tail when rates have to rise. I think there's a possibility that the scramble for low fixed-rates could be linked to the end of house prices falls.

Me too - I'd jump at a 4% 5 year fix, depending on the fee. I hope those on trackers are overpaying the money they're saving or else many are in for a huge shock.

Generali

I think that interest rates are likely to fall in most industrialized countries from where they are at present.

ad9898_3

If my mortgage deal was coming to an end in the first 6 months of next year and I say had 10 years left, I would jump at a 10 year fix. These low rates won't last long, as soon it becomes apparent that Clown's plan has failed, which of course it will, rates will be on the up.

free4440273

Some people do indeed think the BofE, as well as Ecb, have been 'behind the curve'; so, yes, another percentage point off maybe. (all priced in with regards to sterling, surely? :eek:

neverdespairgirl

Generali wrote: »

I think that interest rates are likely to fall in most industrialized countries from where they are at present.

Do you think this will happen in the UK too?

Kez100

If they do I think it will be slow reductions due to the effect on sterling.

The big reductions in rates should soon start to show through in mortgage payments and then the high street (if that is the choice of the mortgage payer). My increase notice for child benefit arrived today - again that will come through along with pensioners extra £60 after christmas. It will be interesting to see if it makes any difference.

Not enough to make one go buy a car or house though!