Rates to hit 2% next year.

mewbie_2

I must confess I didn't expect interest rates at 0.5%. Sorry for not being able to see that one coming. Lowest since Boe founded apparently.

chucky

IveSeenTheLight wrote: »

Mewbie, I hope this is hitting home with you today.

Three times, you make brash comments without any real thought or research into the facts and three times, you've been proven wrong.

Sometimes its better to think before speaking (typing)

very true - good post :T

mewbie_2

chucky wrote: »

very true - good post :T

How's tricks in Felixstowe?

mark55man

not sure if this is helpful to the debate but i fixed for 10 years at 4.99, and whilst I wince from time to time at the better short term rates, I believe I will be OK in the long run. certainly glad not to have to worry with my mortgage (see footer)

StevieJ

the_ash_and_the_oak wrote: »

not sure about this. pretty sure the (heated) debate in the bearish camp around that time was between inflationists and deflationists so not really feeling the idea there was any consensus re:higher rates imo

When interest rates had increased to 5.75% (and upwardly mobile) in 2007 the bears were salivating in anticipation of mortgage holders coming off two year fixes and finding themselves not able to afford the mortgage, thus putting downward pressure on the housing market. The inflation/deflation discussion was much later.

StevieJ

Graham_Devon wrote: »

And you were expecting base rates at this level were you stevie?

Why didnt you say at the time?

I think I was among the first on here (mainly bulls and Dopester) to anticipate record low interest rates (2%), didn't expect 0.5 though

StevieJ

mark88man wrote: »

not sure if this is helpful to the debate but i fixed for 10 years at 4.99, and whilst I wince from time to time at the better short term rates, I believe I will be OK in the long run. certainly glad not to have to worry with my mortgage (see footer)

Well played, I think many will wish they had followed your example in time :beer:

tek-monkey

I've just fixed for 10 years at 5.29%. Not as good as yours, but I'm not a gambling man so fine for me!

steve237

For long term fixes, I don't think the has ever been a better time to fix.

As mentioned previously, I just locked into a 7 year fix at 5.39% with a £125 fee. (I have quite a high LTV so that's the best I could get)

I struggle to understand why anyone would fix for 2 or 3 years at slightly less than 5%, but for 5+ years - I really don't think you can go wrong.

the_ash_and_the_oak

StevieJ wrote: »

When interest rates had increased to 5.75% (and upwardly mobile) in 2007 the bears were salivating in anticipation of mortgage holders coming off two year fixes and finding themselves not able to afford the mortgage, thus putting downward pressure on the housing market. The inflation/deflation discussion was much later.

not totally convinced by this. don't remember salivating about that personally

pretty sure you can read deflation vs inflation arguments going back a lot further than that imo.

http://globaleconomicanalysis.blogspot.com/2005/04/deflation-is-in-cards.html

esp this guy imo