Rates to hit 2% next year.

sandiep

OK. Anyone that thinks 2% is high is very naive. I used to have a variable mortgage and that was at over 12%, not so very long ago (last term under the Torys).

mewbie_2

sandiep wrote: »

OK. Anyone that thinks 2% is high is very naive. I used to have a variable mortgage and that was at over 12%, not so very long ago (last term under the Torys).

It would be triple the interest some people on trackers are currently paying. Ouch!

sandiep

The tory's track record on interest rates is not good. The torys used them for political motivation. The interest rates have been lower and stabeler under the Bank of England control.

Who's going to win the next general election?
Will revoking the bank of england's control of interest rates be something that they sneak in under the guise of reducing debt?
Who's going to pay then?

purch

I used to have a variable mortgage and that was at over 12%, not so very long ago

Is that meant to be relevant to the current situation ?

Under current circumstances 2% is extremely high.

In September 1992 it would have been extremely low.

Different times, different circumstances and different remedies needed.

mewbie_2

sandiep wrote: »

Who's going to win the next general election?

Tories

sandiep wrote: »

Will revoking the bank of england's control of interest rates be something that they sneak in under the guise of reducing debt?

Dunno.

sandiep wrote: »

Who's going to pay then?

Dunno either. But not got a lot of debt so don't care.

sandiep

The point is, anyone that is worrying about a 2% interest rate has got a lot more to worry about. Realistically, under a different goverment, in a year's time, who knows where the interest rates could be. But I think 2% will be a pleasent distant memory.

Different times, maybe, but maybe very short term. How many people are going to be wailing in the streets when they have to start paying interest on their mortgage again, today's windfall has become tomorrow's expectation.

And that's why it's relevant.

purch

And that's why it's relevant

OK

That's your opinion, which I don't share of course, but each to their own.

tek-monkey

sandiep wrote: »

OK. Anyone that thinks 2% is high is very naive. I used to have a variable mortgage and that was at over 12%, not so very long ago (last term under the Torys).

My GF had a mortgage back then, sh said seeing it fall to 7% was like 5 christmases. Rates will go back to that again, the houses may be cheaper but you'll pay more for them!

Gorgeous_George

Interest rates next year are likley to depend on who wins the next election.

Graham_Devon wrote: »

... Bit different to what we have seen lately about rates being extremely low for "years to come".

2% is still extremely low so both forecasts could be right.

GG

nembot

The reality is Labour have to keep rates low, in order to get another term (unlikely I know) whereas the Tories may just say "they're forced to increase rates" and subsequently blame the resulting chaos on economic mismanagement under Brown, how easy would that be to spin.

People have already become complacent about low interest rates, if they went up significantly, well who knows... but you can see what happened last time.