Interest rates going up

dunstonh

Looks like the expectation is that interest rates will be rising again in that period. Probably a fair assumption.

God help all those people being encouraged to come off decent fixed rate mortgages (by average rate standards) to go on to variable trackers if that does happen.

KingL

They're putting the FRISAs down

[B][COLOR=#ffffff]Term[/COLOR][/B]
         Interest rates effective from        Interest rates effective from
        0.00am on 1st February 2009        0.00am on 13th February
 
1 year £500+      3.10%                                2.80%
2 years £500+     3.50%                                2.70%
3 years £500+     3.70%                                3.10%
4 years £500+     4.00%                                3.50%

MiserlyMartin

sheslookinhot wrote: »

yes, but in 3-5 years the fixed rate period will be coming to an end.

I wouldn't want to risk being only 18 months into a 3,4 or 5 year fix and stuck there when rates have just hit 6% elsewhere as we enter the inflationary period which is probably coming as a result of printing money and expensive imports.

Liloly

This is encouraging.

Just been doing my regular scout round of fixed rates and Britannia's one year deal has gone up from 2.5% to 2.75%. Still not brilliant but a move in the right direction.

Even better Derbyshire offer 3.75% for one or two year fixed. Grab that while you can as I think that one wont last long.

Incidentally I have a fixed rate deposit with them maturing at the end of February and was offered a roll over rate of 3%. They sent the letter out well in advance and before the latest BOE cut last week. As I only have £5000 in that account I am going to accept the 3% but if I had substantially more I would certainly be asking for the 3.75% assuming its still available on maturity (28.2.09)

melbury

Hopefully in a couple of years the rate will be about 8% or so and these very low interest rates will just be a very bad memory:rolleyes:

ashteadgirl

Coventry BS also offering 3.75% for1 yr, 2yr and 3 yr bonds. Have jumped in with a 1 yr bond in the hope that by that time things may have begun improving

gozomark

melbury wrote: »

Hopefully in a couple of years the rate will be about 8% or so and these very low interest rates will just be a very bad memory:rolleyes:

Real rates are not low at all - if rates are at 8% it will be because inflation has taken off - I'd rather earn 3.5% over the next 12 months with 1% inflation, than 8% with 8% inflation ...

melbury

Of course I meant 8% rate with 1% inflation:rotfl:

gozomark

in your (and my) dreams