Interest rates to stay low until at least end 2010

Gorgeous_George

They will not rise before the next election.

After the election, when Labour returns once more (The Sun will support Labour - trust me and The Sun controls the electorate), rates may rise gradually back to 5% or thereabouts. If inflation gets out of hand, there's loads of room for Unquantitative Easing.

GG

ChuiMartinez

everybody has there own view to prop up with some chat on rates.

they reference inflation 2 years into the future.

go back 1 year and tell me where inflation was implying rates would be today!

just shows you can't place much emphasis on the beloved fan charts

maveli

inspector_monkfish wrote: »

not even Jesus?

I think he knew everything. Didn't he say "Forgive them for they know not what they do"

koexelek

mruddy wrote: »

hope this is true as we have just took a tracker mortgage, theres no tie in though so as soon as rates go up we will be going for a fixed rate.

I'm on a tracker rate as well, but I am hoping the rates will go up :eek:

The rates need to go up for the lenders to lend properly again. No good me having a low mortgage payment if I am not earning any money to pay it with

harold123

i've currently got a mortgage offer on the table from nationwide on it's 3 year tracker of BOE +2.88..... and i'm starting to question my decision...(maybe it's me)..... are there any better tracker mortgages out there? at the moment my monthly repayments will be around £426 a month after putting down a 25% deposit. I will still have around £8000 in savings after we furnish the house and after deposit is payed. Am i making the right decision? there mortgage offer has not been accepted as we're still waiting to exchange contracts so could i pull out now or would this delay the process even further?

Advice greatly appreciated.

tishbell

I am in he same situation, have an offer on the table form Abbey, but we have been told that we cannot complete untill the 24th Oct. We got a fixed rate 3 years for 4.58% but are now seeing rates at 1.99% for 2 years. I'm wondering if it would be worth applying again, and if it is possible to do this.

Heyman_2

Gorgeous_George wrote: »

They will not rise before the next election.

After the election, when Labour returns once more (The Sun will support Labour - trust me and The Sun controls the electorate), rates may rise gradually back to 5% or thereabouts. If inflation gets out of hand, there's loads of room for Unquantitative Easing.

GG

Do you think, after the election, that Labour will raise interest rates in the US, Europe and other countries where rates are at an all time low?

I think you have to take more of a world view on this - ultra-low rates are not just in the domain of the UK.

Heyman_2

koexelek wrote: »

The rates need to go up for the lenders to lend properly again.

What makes you think this? Aren't they making a killing at the moment because of the margin on the LIBOR rates?

Muhasib

GG - The Sun isn't exactly running complementary stories about the Government of the day why will they turn around and support it come a General Election? plus hasn't the treatment of NR and its small shareholders in your area by the govt. lost it a lot of its traditional support?

Banks are not lending as the risk is greater on mortgage loans if the housing market stumbles which is why the LTV % on new lending is low, it gives them a greater margin ie the borrower loses their deposit money from a fall in value before the lenders mortgage amount is at risk. Also they are supposed to be judged against tighter rules on Capital Adequacy (Basel ) in the future, basically they need to put extra money aside against defaults according to the Europeans.

Finally they can't raise new funds to lend out from financial markets backed by the mortgages they hold like they used to (RBMS) so they have to rely more on savers for funds who aren't exactly queueing up to deposit given some of the rates they are offered

dazzaofdagenham

is today ( thursday ) Decision day on the BoE interest rates ?

Hope they keep it the same....

darren