IR to rise again next month

Hereward

mystic_trev wrote:

Hereward wrote:

it would seem a little strange to increase interest rates the month before the next BoE inflation report, especially as interest rates were kept on hold this month.

Will that Incude Tuition fees? There's talk that they'll help push up CPI to the 3% mark!

I expect that the rise in university tuition fees to be included in the November Inflation Report. As the Bank of England (BoE) meets before the report is officially published, although I believe it is used in the committee meeting, I expect that there will be a long debate about fees and their effect on the inflation figures.

Me_Myself_2

Realwildone, I think you are probably right this time in that interest rates will rise before long, but you are such a doom and gloom merchant generally, so people will think you are 'crying wolf'.

jamminjamaica

i guess we will have to just and see. thank goodness i just negotiated a good 5 year fixed rate.

asandwhen

this from the working lunch webpage

Alan Clarke, UK Economist at ABN Amro, told Working Lunch: "Rates will peak at 5% in November, but next year there will be sharp cuts and we'll be down at 4% by the end of 2007."

asandwhen

but it also says :

Elsewhere in the City, pundits are talking of rates reaching 5.5% later in 2007, so anyone looking for a loan can be forgiven for feeling utterly confused about the outlook

asandwhen

my conclusion? if the experts dont know how the heck am I supposed to know!

delboypass

jamminjamaica wrote:

i guess we will have to just and see. thank goodness i just negotiated a good 5 year fixed rate.

You fixed a 5 year fixed rate and a house which was affordable at a lower rate...

as interest rates increase, affordability decreases lowering house prices..

you could find in 5 years if interest rates keep rising that your house is not worth as much as you fixed for..

think about it!

chinagirl

I am totally confused!!! I have a mortgage of £86500 with 22 years left on my house (value £140000)

What do you think of this deal - 5.99% fixed rate mortgage with Abbey for 5 years resulting in monthly payments of £592.05.

Is this a wise move, or how about this - 5 year SVR discounted mortgage 1.3% off SVR resulting in payments at moment of £564.81.

Appreciate any input. Cannot afford to increase the monthly payments by much, just looking for best option. How about if I asked for a 2 year fixed rate? Are they worth the bother, and would it be cheaper a month?

QuidProQuo

chinagirl wrote:

What do you think of this deal - 5.99% fixed rate mortgage with Abbey for 5 years resulting in monthly payments of £592.05.

That's not a competetive rate

Have a look at Portman 4.99% for 5 years with £499 acceptance fee, or they offer 5.25% with no fee and free valuation and legals

Based on the amount you need to borrow it is probably slightly more economical and much simpler to go for the fee saver (based on the cost over 5 years).

PoorDave

Me_Myself wrote:

Realwildone, I think you are probably right this time in that interest rates will rise before long, but you are such a doom and gloom merchant generally, so people will think you are 'crying wolf'.

Agreed. Realwildone is always crying wolf, so why should we believe this post?

If only there was a wolf trained to have a taste for doom-mongers...