Base rates, the value of £1, and mortgage choices

heart_not_head

From what I have read so far, broadly interest rates look to stay unchanged for 6 months with some saying low for "much longer". I want to understand base rates, just to feel confident about a mortagage choice, not to try and make millions second guessing the market. Instead of rising inflation being the threat that will mean increasing base rates, writers talk of "fiscal tightening" happening first, meaning taxes will rise sharply, public spending will be lowered, reducing the national debt. I will have less net pay, but continued low interest rates might make it easier to bear. So I take a deep breath but feel confident to stay on a tracker or an SVR.

But what happens if the value of the £ falls? Isnt the only way the £ can be defended by increasing base rates to make it a more attractive purchase for investors and thereby regain some value? So fixing a mortgage rate now would be wiser? Or am I mistaken? What else could happen in this scenario? Would it simply be allowed to happen despite that fact we import more than we export so it would again stoke inflation and higher base rates?

And when the government try and off load all the gilts they purchased with QE money, what happens if noone thinks they are worth buying? The price has to drop because £1 isnt actually worth much? What does "reversing QE" actually mean - how can money artificially created be artificially destroyed? In a medium future where UK house prices remain unaffordable, they are almost certain to drop again until about 3.5 times average income.And we know for those that keep jobs pay rises will be low; but net pay will still probably drop.

Trackers, fixes and SVR's - its not just about being smug we make the right choice, its trying to make the best choice as we know the future will mean higher costs and lower income. Because I dont understand these new crazy economics and therefore may have far higher costs than I needed to, just seems incredibly wrong.

Houses are homes - for as long as we can afford the mortgage - so how do we contend with managing our own household economy when its this hard to see anyone knowing how the UK economy will need to be managed? For the last six months Ive thought "fix for as long and as low as possible and forget about it all". And that would normally be true in a climate where taxes dont rise. But thats not where we are is it?

Can anyone else make any better sense of things? Id welcome reading others views.