Rising rates????

benjo

treliac wrote: »

:eek: What on earth would they do with all those people homeless through repossession?

Same as they did in the 90's - not alot.

Gorgeous_George

patman99 wrote: »

I switched from a Co-Op tracker (base + 0.75%) to a C&G tracker (base + 0.17%), best thing I did. If I switch again, then will consider a fixed rate instead. If the Tories win the next election, them interest rates will end-up going through the roof (anyone remember the 15% mortgage rates in the '90s?).

This is a serious concern.

I would hope that even a Tory government would acknowledge the incredible achievement of the current administration in largely avoiding the effects of a global financial meltdown. Without Gordon Brown's leadership, I firmly believe that we would be in a far worse recession than we currently are.

The Tories love people with money (and I mean lots of money) so high interest rates are more likely if the Tories win and the effects would reach far wider than the housing market. Ration books anyone?

GG

redpete

davidla wrote: »

If you think rates will rise then a tracker probably wouldn't be a good idea.

Why? It all depends on how much you expect interest rates to rise by. Fixed rates are approx 2% higher than tracker rates available now, so if I think interest rates will rise and over the next 3 years (for a 3-yr discount deal) average more than 2% higher than they are now then fixed would be better, if not then a tracker would be better.

Lenders do the same sums we try to and have more information and experience than most of us do. Therefore I would tend to go for the deal that best matches my attitude to risk. If you can afford the current fixed rates and prefer to know what you will be paying for the next 2-3 years then go for fixed.

I've just gone for a interest only 3-yr tracker, 2.5% above Base Rate because of: flexible payment arrangements, low fees, my guess that interest rates won't raise sufficiently in the next 3 years to make it expensive.