are SVR set to rise soon

susieanne

Sorry i bet this has already been asked a million times but here goes again .I am loving the low SVR at present its really helping me to pay extra off things so like everyone it would be nice if they stayed low for a while yet .People where saying on here a couple of months ago that they would rise by december or jan 2010 does that seem to be still the case

snarffie

The general consensus on here and from most sources I've come across is that interest rates WILL rise at some point, and probably by a large amount.

Unfortunately, nobody knows when, so you have two basic options:

GAMBLE and fix now (lose out on the savings you are making).

or

GAMBLE and fix later (at the risk of having to fix at a higher rate).


FWIW, I'm gambling and taking a wait and see approach. Just be careful about who you listen to, and don't make rash decisions. If I'd listened to the chorus of opinion about a year ago, I'd be stuck on a 5.69% fix, rather than the 0.23% tracker I have now. In another year's time, I might take a different view on that....

StuartGMC

Keep watching the inflation figures and data on the business streams (BBC, Bloomberg, FT, Money Observer, etc) as this will be a sure sign rates will have to rise to try to control inflation. Remember markets have priced in the expectation of situation six months ahead so the present improved markets will run in parallel with on-going redundancies, but also look at your own costs; our groceries bill has noticeably increased recently.

As Snarffie noted, it is all down to what degree of risk you are comfortable with; some data I've seen talks of 5% base rate by 2012 for example, others that inflation will start rising in 2010 and rates will do likewise.

Your best option is to start looking at the providers that interest you, and be ready to get quotes and offers rapidly. Meanwhile enjoy these historic low rates.

RosieTiger

Common sense quoted by both posts above - IMO it comes down to whether you would be comfortable if the rates went up and can you take the risk. It's a VERY personal decision.