Interest rates could increase "with vigour"

Generali

Cat695 wrote: »

Crash Gordon....I thought that was his nickname now?

I didn't put together the name and the initials.

Thanks Cat695.

Thrugelmir

Johnny_Chaos wrote: »

Those who take out a variable mortgage this year based on monthly affordability are going to be hammered!

Sure, interest rates will go up, but I don't think it will be until next year. Don't forget, during the 1930s depression, which many commentators are comparing the current crisis to, interest rates are almost zero for a decade. I don't think it will be that bad, but I cannot see them raising them for a good few months.

I worry about the Tories winning the next election. They'll have no qualms about raising rates - possibly to double figures like back in the Eighties. Great for savers - the kiss of death for borrowers.

You know that an election is on the horizon. As the current Government has kept very quiet about how the financial mess this country is going to paid for. It really doesn't matter which party is in power next year. What we need is prime minister with vision and actually tell the truth. I'm so tired of the current regime spinning the news and deflecting away from the issues that need addressing now. Next months budget should be very interesting. As it will show just how wrong the November forecasts were.

whathavewedone

From a purely selfish point of view Mewbie I would love it if interest rates started rising in a few months time - our fixed rate doesn't expire until December 2011 and it would be great to be getting decent interest on our savings in the meantime.

Just don't see rates going above 3% until we are coming out of the woods - probably about 6 months before our fixed rate expires by which time I estimate they will be at least 8%. I don't base this prediction on anything apart from the law of s*d.