Interesting rates

craig_1983

hi to all,

with the base rate being at 0.5%. you would have thought the interest rates at the banks would be low.however these are slowly creeping up.a few weeks ago fixed rate mortgages were around 4.39%. shopping around and ive realised theyve gone up to 5.39% at the cheapest.
i personally reckon people are panicking about interest rates rising like they have in the past.this has caused banks to raise their rates because most people are worried about the interest rates and are trying to fix to 5 year deals.can anyone see fixed rate deals coming back down a little bit once these nervous people on the fence take a deep jump??

thanks.

sys4096

My understanding is a bit different - and probably a total oversimplification but I hear it's because the rates at which banks lend to each other is still high and so this is passed on in their offers to customers.

Articles I have read suggest interest rates are probably going to stay low into late 2010 so I'm personally thinking of chancing a short term tracker (2 years).