10 year fixed. Wise move?

Malky

From what I've read in the last year or two, house prices and interest rates tend to go in 10 year cycles. Is it a wise move to take a 10 year fixed now before the interest rates go through the roof. The current low interest rate can't be sustained forever. Can it?
Anyone happen know to know what the approx variable rate was 10 years ago and 20 years ago as a comparison?

EDIT
Just found out that the BOE base rate was 5% in 1999 and 15% in 1989 :eek:

mrcow

Malky wrote: »

From what I've read in the last year or two, house prices and interest rates tend to go in 10 year cycles.

How did you work that one out?

Malky

mrcow wrote: »

How did you work that one out?

I plucked a figure out of thin air
Just going by a few articles I've read. Not always true mind you.
Back to original question. Is it a wise move to go 10 year fixed now?

mrcow

Well I'd never fix for 10 years.
But then again, I'd never fix as everyone I know has lost out through fixing (although there was some debate to the contrary the other week). I've only been in the housing market for 15 years though.

With regards to what the typical SVR interest rate was 10 years ago, I'm pretty sure that C&G was 7%. (I can check if you like?)

happybroker

10/989 base was 13.78%, 04/1999 base was 5.25%, and now 0.5%............I'm struggling to see a 10 year cycle and it's similarly varied on other years at 10 year frequencies.

if you want to know exactly what you are going to be paying on your mortgage for the next 10 years then this could be for you but your finances are probably more complicated than that.