Interest rates in ten years?

mose_2

Hi all, What is your opinion on what will happen to interest rates in the next

1. 2 years

2. 5 years

3. 10 years

Just trying to work out whether to get a ten year fixed rate mortgage or not.

I think we could be in trouble in 5 years time.

Mose.

foreversummer

IMHO, if you can get a 10 year fixed rate while rates are historically low, as they are at the moment, you should be laughing. However, you do need to consider how your circumstances may change over the next ten years and realise that you will probably have to pay a hefty penalty if you need to get out of the mortgage.

Foreversummer

caracal_77

Who knows... some indicators suggests this downturn is unlike any other we've seen in the past.

opinions4u

17 years ago I was paying 15.4% on my mortgage.

People should never forget that this can happen.

How much would your repayments be?

How would you afford to pay back?

Worth doing the sums before you sign for debt!

Grolsch30

opinions4u wrote: »

17 years ago I was paying 15.4% on my mortgage.

People should never forget that this can happen.

How much would your repayments be?

How would you afford to pay back?

Worth doing the sums before you sign for debt!

Do you think hyper inflation may become reality anytime soon?

I'm on a tracker at the moment with a rate @ 1.38% but my deal is running out in July and not to sure what to do another tracker, fixed or the standard variable rate.
Even though the interest rates are virtually zero the deals out there do not represent this if you know what i mean.

I am doing well out of this at the moment but once my deal runs out my payments will jump up again!

With the government now basically printing money hyper inflation is a serious worry no?
If yes then maybe a long term fixed deal maybe wise?!

oh I don't know :rolleyes: !!!

Conrad

My personal opinion (not advice) is too fix for a goodly period once fixed rates below 4% arrive.

As for predicting the future - impossible and a complete waste of energy. You fix if yout peace of mind, end of.

RainMaker_2

mose wrote: »

Hi all, What is your opinion on what will happen to interest rates in the next....

Have a look at the market concensus (swap rates).
http://www.swap-rates.com/UKSwap.html Using data from the FT.

The 10 year swap is currently 3.75%.

dimbo61

A good long term fix at 4/4.5% would be a good deal as this gives you long term security and if overpayments are allowed you could if you worked at it be mortgage free by the end of the fixed term.
You dont mention the size of mortgage you want, LTV, income , other debts, credit history or many other details so maybe you need to see a whole of market mortgage broker to see what they can find for you. ITS a big decision !

mose_2

Ok, joint income of 40k, property worth £120k ish, current mortgage of £43k, looking for £150k mortgage. Is this possible nowdays does anyone think? Or do we not earn enough?

minimike2

Opinions from random people on an open forum are not exaclty the best way to form the basis of a decision that will effect what is probably your biggest single financial commitment.

If you need advice you need to go and see someone qualified to give it.

pfpf

.....like a bank.