What will interest rates do this year + Advice!

Smokeysimon

Hi all,

Just wondered what the general consensus was as to what interest rates will do this year?

My fixed rate mortgage ends in December which is currently at 4.9% and slightly nervous that a bout of higher inflation might push the rates and thus future deals up!

Any opinions welcome - good, bad or even ugly

bodgerx

The only way is up.

Jonbvn

Rates can only increase. However, it is very uncertain when and by how much they will increase by. I have seen reports from Capital Economics saying that rates will be below 2% for then next 5 years. Is that likely? Who knows?

Wutang_2

I think they will continue to plummet

Peelerfart

"Rates can only increase. However, it is very uncertain when and by how much they will increase by. "

I think that accurately sums the situation up

PF

dimbo61

So what happens to your mortgage once the fixed rate ends?
Does it go onto the SVR ( who is your lender?) or some sort of tracker deal!
You might be better off doing nothing and go onto whatever rate the mortgage reverts to.
Please dont read on your mortgage paperwork that the mortgage reverts to the lenders SVR currently 9.8% ( november 2003!!!!)

southantrim3

Wutang wrote: »

I think they will continue to plummet

Lol - funny!

redpete

Base rates will go up by some unknown amount over an unknown time. Fixed mortgage rates will go up but not necessarilly synchronously or proportionately with base rates and there's a possibility they will come down slightly before going up.

I've just remortgaged to a tracker rate because I don't think base rates will increase in the next 2 years by enough to make it more expensive than the fixed rates that are on offer - but of course I might have made a mistake.

happyrichard

The interest rate, I am confident in saying, will rise. If anyone knows any more, please tell me...

The BoE don't seem in any rush to increase the rate...the recovery is way too delicate at the moment to do anything rash.

de1amo

all we can do is look back in history--coming up to election time so rates kept on hold --after the election the only way for rates is up plus there has been so much printing of money to pay for these artifically low rates that it will have to be sucked back in to avoid hyper inflation or it will be Germany between the wars!-i am no economist but i see the common sense!