Will interest rates be cut still further in the UK?

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jenner wrote: »

i got a fixed rate nearly 2 years ago for 10 years at 4.99, just recently it has seemed quite high considering the recent drops, but at least i know what im paying. if rates go up to high levels i will be really pleased i did. however, for banks to be charging about 4% now sounds a bit of a rip off to me, shouldnt it be lower?

To be honest thats quite a good deal, everyones rushing for trackers at the minute, that won't last long, they will all be squealing like pigs when rates go back up, and they will, its just a matter of time.

Really2

Why do some say we will be the next Japan then say rates are going to shoot back up.

Japans interest rate as been 1% or below for the last 13 years.

zarazara

I think the will reduce further yet.

free4440273

Really2 wrote: »

Why do some say we will be the next Japan then say rates are going to shoot back up.

Japans interest rate as been 1% or below for the last 13 years.

true, but Japan's inflation has been non-existent.

Really2

free4440273 wrote: »

true, but Japan's inflation has been non-existent.

And whats ours predicted to be next year, less than 2% possibly negative.

If anyone thinks IR will be over 2.5% in two years time I think they are a saver trying to remain positive.

free4440273

Really2 wrote: »

And whats ours predicted to be next year, less than 2% possibly negative.

If anyone thinks IR will be over 2.5% in two years time I think they are a saver trying to remain positive.

I'm not so sure. I think (technically) oil could take a hammering (say, $30) but thereafter I think we begin the ascent; ditto commodities like copper which has taken a battering - it would not take much to set the Bull agenda going once again IMO.

Really2

free4440273 wrote: »

I'm not so sure. I think (technically) oil could take a hammering (say, $30) but thereafter I think we begin the ascent; ditto commodities like copper which has taken a battering - it would not take much to set the Bull agenda going once again IMO.

Technically yes,(if you think coming from ridiculous highs to normal levels are a hammering) but the bubble in commodities was what was, a bubble.

If people think housing is not suddenly going to bound back to 07 levels it will take the same for commodities.

Don't forget food crop production was lower due to fuel crops. People saw that and then thought fuel crops are not worth it and plowed money straight in to oil.

So we had a food and oil bubble, are people still rioting on food prices? did some food magical appear? no it just come down in price there was no shortage of oil or food just a bubble.

free4440273

Agree; the drop has been gargantuan: Rio Tinto was at $100 a yr ago; Xstrata was at $80 (now at approx.$13).

boyse7en

To be honest, I haven't got a clue what is going to happen to interest rates, so I'm going to try and get a 5 or 10 year fixed rate Feb/March next year. Ideally at under 4%, but I'll take under 5% as long as the fees aren't extortionate.

I took a 5 year fix out back in 2001 at 5.3% and watched rates drop to well below that, but I prefer the security of knowing my outgoings. I like to be able to sleep at night.

Gorgeous_George

Is there a www.mortgagecostcrash.com website where people have deep, meaningful chats about the massive falls in mortgage payments?

If not, why not?

Did you click on it?:rotfl:

GG