Convince me that Rates are not going to the moon...

Sooler

Smurggle wrote: »

I hear so many people go on and on about the rates hitting 15% in 1900

1992 Black Wednesday - bring back Norman Lamont

wharty

treb1971 wrote: »

I expect the cost of fixed rate mortgages to come down over the next three months, as the difference between swap rates and mortgage rates is (I've read) 2.8% - an unhealthy gap. This is the difference between the rate at which the banks lend to each other, vs. the rate at which the banks lend to us.
I've also heard commentators state that banks are going to be 'challenged' for two to three years. If this is the case, interest rates will not go up. The low BOE rate helps the banks.

When i got my remortgage on friday at 4.94% i looked at the swop rates and i think they were around 2.28%, so i explained this to the mortgage advisor and she told me not to go by that because the banks are not borrowing of the other banks at the moment, they are having to borrow of large insurance companys at a higher rate as nobody trusts each other.
Saying that would you trust Natwest?:rotfl:

poppy10_2

Amblin wrote: »

My parents tell me of times when they first married of 15% interest rates and terrible deflation.

When was this?

MACDONALDO67

If rates go back up to 15% then we have lost our home. Fact ! :eek:

uzubairu

beecher wrote: »

I get that, and fixing for 5 or 10 years at a rate which you're happy with and which leaves you a cushion seems to me to be the best option. If you don't pick the lowest ever available 5 or 10 year rates, the peace of mind sounds like it'd be worht it.

That's what we chose (see sig), and was definitely worth it for us.

Our rate left us a healthy cushion which has enabled us to overpay and reduce the term of the mortgage.

Fliss_M

MACDONALDO67 wrote: »

If rates go back up to 15% then we have lost our home. Fact ! :eek:

You and me both and I suspect all those who bought a house 2-3 years ago with an 80-100% mortgage who now cant get another deal and are stuck with a variable rate.