Interest Rates

Dave43_2

Hi,

Considering moving home.

I know this is about opinion and know one has a crystal ball, but would like to hear the thoughts of people on what future interest rates could be within the next 5 yrs - this would enable me to work out what I can stretch myself to.

Cannot switch to a long term fix with current mortgage as I have just recently changed to a new deal so only the additional borrowing of 42000 could be of a longer fixed period of time if I feel the need.

Thanks

inspector_monkfish

http://forums.moneysavingexpert.com/showthread.html?t=1660983

ad9898_3

Base rates are highly likely to be higher than now, the banks will leap at any jump in BR to put up their deals.

[Deleted User]

Its thought unlikely that rates will rise this year,after that it depends what happens with inflation,and of course a change of govt may have a bearing on interest rates as the tories seem to love high interest rates,after all most of them depend on invested capital.

Thrugelmir

Dave43 wrote: »

Hi,

Considering moving home.

I know this is about opinion and know one has a crystal ball, but would like to hear the thoughts of people on what future interest rates could be within the next 5 yrs - this would enable me to work out what I can stretch myself to.

Cannot switch to a long term fix with current mortgage as I have just recently changed to a new deal so only the additional borrowing of 42000 could be of a longer fixed period of time if I feel the need.

Thanks

Always take a pessimistic view that way you won't be caught out. Could you afford your mortgage at say an 8% interest rate ?

ManAtHome

BoE rates mean squat anyway unless you're on a BoE rate tracker. New tracker rates and savings rates have been creeping up over the last couple of months - money is affected by supply and demand as well...

Generali

If it was me, I'd fix. You are almost certain to end up paying more over course of your mortgage but it saves you from the chance that interest rates will go very high and cause you to be unable to pay your mortgage.

StevieJ

Generali wrote: »

If it was me, I'd fix. You are almost certain to end up paying more over course of your mortgage but it saves you from the chance that interest rates will go very high and cause you to be unable to pay your mortgage.

Good sound advice from Generali.

confused31_2

rate will definately go back up, i reckon by the end of the year we will see the rates rising, and dont be surprised if they go back up as quick as what they went down.
A lot of people who are milking the rewards of being on trackers, i think now they need to start jumping on to fixed rates if they have enough equity, if they dont, they need to save what money they are making now for when the rates go up.

Everyone has been going on about reposessions, but if the boe was at 5% now there would be a hell of a lot more repos out there now and 5% is not really a high rate.

it makes me laugh the best tracker rate now is 2% above the boe rate and you need 60%ltv, now if the boe rate went up to 7% people would be paying 9%, i would definately be looking to get a fix now if i was on a tracker.

amcluesent

Base rates will be back over 6% in the time-frame you're talking about. IMHO.

Dave43_2

Thanks for all your comments.

Could afford upto 7.5% - but would look to sign up on a fix.

I am currently with the Nat West and have recently renewed my deal - 2yr fixed - if I was to change my deal ( they currently have a ten year fixed ) and combine my additional borrowing into one part of the mortgage and move into the ten year fixed - would I have to pay a redemption penalty on my current deal.

Thanks

Dave