Interest rates in ten years?

minimike2

Well no, not a bank.

mose_2

It's ok i wasn't going to take out a mortgage on anyones advice on here, i am just asking what people think will happen in the future, And i would rather ask a wide range of people on here than take advice from one so called expert.

Cheers

RainMaker_2

minimike2 wrote: »

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

Can you recommend somebody "qualified" to give advice on future interest rates please ? I for one would be willing to pay an awful lot of money for that kind of "qualified advice".

Joe_Bloggs

If you want to have a voice in setting the Bank of England interest rate then there is some information for applicants for the Monetary Policy Committee , here. Salary £128,000, Deadline Feb 2nd 2009
J_B.

ixwood

I think the one sure thing is that rates will go considerable up at some point in the next 10 years.

Labour governments always end in a sterling crisis (As we all know, you can only borrow and spend beyond your means for so long). That means very interest high rates at some point.

It's also worth bearing in mind, the IR average is around 8%. And averages being averages, periods below average mean equal periods above average at some point.

A fix at a decent rate would be my preference for the future. I would consider anything below 5% good.

RainMaker_2

A serving member of the MPC (Danny Blanchflower) has said that interest rates are heading for Zero;


"But let’s put those differences aside. We have to get rates down, do what we have to do. Doing too much too early is better than doing too little too late. But obviously when you get rates down to zero you have to be prepared, once the economy recovers, to raise them again.”

Blanchflower repeats that there is further to go on interest rates, taking them down to American levels...."
http://business.timesonline.co.uk/tol/business/industry_sectors/banking_and_finance/article5580801.ece


I wouldn't be rushing into a fixed rate anytime soon !

beecher

minimike2 wrote: »

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.

No-one's qualified to give advice on what will happen in the future. Maybe an economist or an economic historian could give you an idea, but mortgage advisers surely can't do so.

minimike2

I didnt indicate that advisers can predict the future.

Im just sick of seeing people make decisions on thier mortgage based on what "Jim from the pub" says. Its rediculous.

RainMaker_2

minimike2 wrote: »

Im just sick of seeing people make decisions on thier mortgage based on what "Jim from the pub" says. Its rediculous.

Ultimately any decision is based on a forward looking opinion of interest rates. Who would you suggest speaking to ?

beecher

minimike2 wrote: »

I didnt indicate that advisers can predict the future.

Im just sick of seeing people make decisions on thier mortgage based on what "Jim from the pub" says. Its rediculous.

I take your point but when it comes to judging what will happen to interest rates in the future, Jim from the pub might just be the best option if he's studied basic economics or taken an interest in history.