bank of england base rate forecast?

fei_3

Hello All,

Any suggestion about the bank of england base rate forecast for next few years. I am thinking about remortgage for fix or tracker?

Thanks

ILW

I have heard it is likely to be in double figures at some point in the future.

cookie1003

then back down to single figures in the late future after the near future. but then according to some made up figures that someone who works in the city thinks it could happen earlier or even later than we expect.
i hope it just stays where it is

F_T_Buyer

BBA Libor for up to one year (as of 5th Oct):


O/N 0.55833
1W 0.55667
2W 0.55667
3W 0.55667
1M 0.55833
2M 0.56000
3M 0.56500
6M 0.58333
9M 0.60500
1Y 0.64333

Thrugelmir

fei wrote: »

Hello All,

Any suggestion about the bank of england base rate forecast for next few years. I am thinking about remortgage for fix or tracker?

Thanks

What rate are you currently paying?

F_T_Buyer

Looks like rates are going up. I can't remember the symbol for long term swap rates (i.e. the cost of fixed rate mortgages), but you can find out on futuresource.com

Edit:

Forgot about this cool website: http://www.swap-rates.com/UKSwap.html

firstaspect

My opinion would be that if it rises above 2% by the end of 2012 I'd be surprised. May not even get that high.

opinions4u

You're asking an impossible question.

We can all have a stab, but it's a bit like picking lottery numbers.

Read what the experts say ... some say it will be low for years to come, another, not too long ago, predicted 8% by 2012. Opinions4u, some bloke who spends too much time on a messageboard, reckons it will be around 2% by the end of next year and will slowly edge up from there.

Nobody has a crystal ball. Nobody knows. All I would do is suggest you find out what your mortgage payments would be if rates were 10% and plan your finances around that (saving or overpaying the difference between actual rate and 10% rate).

For most of my mortgage paying days, I've paid between 5% and 15.4%. I'd ignore any rates from that last 2 and a half years when planning long term finances. Caution usually softens the landing when things go wrong.

snarffie

opinions4u wrote: »

Nobody has a crystal ball. Nobody knows. All I would do is suggest you find out what your mortgage payments would be if rates were 10% and plan your finances around that (saving or overpaying the difference between actual rate and 10% rate).

This is exactly the right advice imo.

I put the difference in a savings account as I'm paying a low mortgage rate. It's also useful to have some spare money over and above the rainy day savings in the event of an EXTREME emergency, but you should never treat mortgage overpayment savings as 'normal' savings.

Pincher

This is why soothsaysers, shamans and astrogers get so much business. Ignorant scared people are asking to be told what to do.

If the pundit "experts" won't give people the illusion of certainty, then they will go to the nearest gypsy with a crystal ball, and waste their money on advice that are based on nothing. Why don't we give free advice that does no good at all as well, but these people will go away happy, but not having wasted their money.

Pincher

So here's my advice. Long term average for BOE is around 5%, so if you can get five/ten year fix for below average, you should do it. When BOE is above 5%, and going up, you should only fix for short term, up to three years.

There is nothing wrong with paying more for certainty, that's why you buy insurance. People with safe jobs and spare money can afford to take risks, but if you can't afford to risk an unexpected rise, fix intelligently: that includes not fixing if you are going to sell soon.