Bank of England base rate, predict what it will be in 2 years?

pault123

I'm considering a tracker mortgage which has an early repayment charge in the first 2 years. So whatever happens I need to be prepared to ride it out if base rates rocket up.

The tracker is 2.44% above base rate - so very attractive at the moment. Base rate would have to exceed 2.5% for me to be worse off than my current 4.79%.

What are your predictions for the base rate in 2 years time? :money:

ess0two

Get a lifetime tracker from say,ing or hsbc i think,then you can opt out without penalty should rates rocket.

1984ReturnsForReal_2

No more than 5%.

HAMISH_MCTAVISH

I doubt we'll see base rates of more than 0.75% within 12 months from today.

And I doubt we'll see base rates at more than 2.00% within 24 months.

1984ReturnsForReal_2

HAMISH_MCTAVISH wrote: »

I doubt we'll see base rates of more than 0.75% within 12 months from today.

And I doubt we'll see base rates at more than 2.00% within 24 months.

Once they decide to put it up it will ramp up to 1% within 3 or 4 months.

HammerSmashedFace

Difficult to say, I wouldn't touch any kind of tracker without being able to make a quick exit from it. Rates dropped over 4% in just a few short months, one of the reasons was to stop the avalanche of repo's and the capitulation of the housing market. That has worked in a certain sense that problem has been kicked into the medium term.

The issue is, if they can fall that fast, they can certainly rise that fast too. Although I think it would take something like a bond strike/default to raise them that fast, simply because there are probably a million plus potential repo's out there if rates were to hit even a meagre 5%, this would bring on 50%+ house price drop and certain doom to the banks that have already hoovered up almost £1 trillion.

Best thing is........ get the least debt you can get away with (preferably none), with the lowest IR you can find with an exit strategy.

nearlynew

When I was lad, houses were cheaper and more affordable, jobs more secure and mortgages more straight forward.
There was no thought about how you might be wrong-footed by some financial trickery several years down the line.

No one gave a f*ck about finding a long term tracker, or saving 0.25%, or tie-in periods, or redemption charges or whatever..............

More choice?


More f*cking scams more like.

LizEstelle

nearlynew wrote: »

When I was lad, houses were cheaper and more affordable, jobs more secure and mortgages more straight forward.
There was no thought about how you might be wrong-footed by some financial trickery several years down the line.

No one gave a f*ck about finding a long term tracker, or saving 0.25%, or tie-in periods, or redemption charges or whatever..............

More choice?


More f*cking scams more like.

Wrong footed?

You were lucky.

I had to work down t' pit for 12 hours, come back home, make dinner for a family of 95 and then sleep under a cardboard box...

tommy75

ess0two wrote: »

Get a lifetime tracker from say,ing or hsbc i think,then you can opt out without penalty should rates rocket.

who or hsbc?

tommy75

Had a look on Woolich and HSBC. Its very confusing to say the least. I remember the MIG from a few years ago. That was a sneaky one.

tommy75

Had to crop them: Whats available from woolich and HSBC:





Worth a head scratch...