interest rates

lola_rose_3

out of interest, do you think interest rates will come down

canny_yorkshireman_2

wish we all new but my guess is they will hold untill the effects of the oil prices filter through to the inflation figuire which will inevitably go up thus increasing pressure on the BOE to increase rates but with the back drop of unemployment rising to 3% and the housing market cooling and consumers not spending money then they will be squeezed into a tight corner to cut rates so hold on to your hats will be an intresting few months and would like to be a fly on the wall in the last quarters meetings even opinion amonst the experts is divided.

homer_j_3

nobody knows. end of.

You can look at interest rates as being failry stabe and you can talk to 5 different people and get 5 different answers. As the above poster states, a lot does depend on the econmy and a lot of so called experts predeicted a crash and rises in interest rates which never happened.

When you apply for a mortgage, the Key Facts Illustration will tell you what a 1% increase will cost. If you cannot afford this then seriously consoder wjat you are doing.

ReportInvestor

Deemy thinks they're going up.

The big pressure in that direction comes from Japan, where they have worked through their long deflationary period.

Some 1 year fixed rate savings accounts have risen slightly over the last two months.

meanmachine_2

The BoE likes to make the populace think it has mastery over the economy.

In truth, that's not really the case.

We've had 10 years of low int rates because the second biggest economy in the world - Japan - has been in recession, and pumping out cheap money.

Whether that's coming to an end, well again who knows? But it looks that way.

On the other hand, its recovery could falter and drag rates back down again.

If you can't afford the mortgage at a rate 3% above where it is now, you're taking a big risk, imo.

HelpWhereIcan

If I could answer that better than anyone else I'd be a very rich man. In 1998 I tied myself into a 5.75% 5 year fixed rate, not clever in hindsight, but suited my needs at the time for stability.

I always tell my customers to base the fixed/variable decision on how sure (or not) they need to be of what they will be paying rather than trying to second guess the money markets.

With either one you take a gamble - I 'lost' mine when interest rates fell below 5.75%, but have 'won' for the last 3 years when I have been fixed at 3.89%. I needed to know where I was, so picked fixed. Have just remortgaged onto a no tie lifetime tracker 'cos my situation is fairly fluid at the mo and I may need to change lnder/move fairly soon. Does not stop me hankering after the 'safety' of a fixed though!!