BOE Interest Rates Mystery?

Wutang_2

Frozenace wrote: »

I'm on a 3 year tracker, started last year, although I'm aiming at overpaying 10% every year for 3 years to offset any increase in interest rates.

Good for you;)

inspector_monkfish

Wutang wrote: »

Good for you;)

watch your back...

opinions4u

chunky02 wrote: »

I am looking at remortagaging at the moment and as a mere layman i was wondering why there is such secrecy, uncertainty and mystery over what the BOE do with interest rates? Surely a clear process where they said we are rasing to 1% but keeping it there for 6 months would allow people to plan properly and manage their savings / mortagages better?

Why the hell does it matter when virtually every mortgage lender out there has a range of fixed rate products that give you exactly what you want?

Even on a variable rate mortgage many lenders will only vary payments once a year, so you know exactly what outgoings you have for 12 months at a time.

housesitter

redpete wrote: »

Fully planned economies have been tried in the past and failed (e.g. the Soviet Union).

I would suggest to you that the decedant western economies have also failed, and just like our soviet comrades we have also swept it under the carpet and carried on as if the glorious plan is a resounding success.


Frozenace: In much the same boat, was going to do the same thing but instead of over paying quite so much am going to put it into a nice savings pot and wait to see what happens when the fix ends.
More flexibility if rates are utterly crazy. I still stand a chance of paying them off. Doing the sums, it worked out better that way given a mortage rate of 12%.
It'll all differ depending on your mortgage size.

ViolaLass

housesitter wrote: »

Frozenace: In much the same boat, was going to do the same thing but instead of over paying quite so much am going to put it into a nice savings pot and wait to see what happens when the fix ends.
More flexibility if rates are utterly crazy. I still stand a chance of paying them off. Doing the sums, it worked out better that way given a mortage rate of 12%.
It'll all differ depending on your mortgage size.

Or you could get a mortgage that allows you to take back the money you've overpaid or use it as a payment holiday if/when you need one.