What will the mortgage rate be this time next year?

ManAtHome

Likely to be increasing bankster squealage over the next year as the Special Liquidity and Credit Guarantee schemes run down and losses on BoE-linked products increase. More QE (politically tricky) or a backroom deal to increase BoE without (the banks) increasing other rates too much..?

[Deleted User]

ManAtHome wrote: »

Likely to be increasing bankster squealage over the next year as the Special Liquidity and Credit Guarantee schemes run down and losses on BoE-linked products increase. More QE (politically tricky) or a backroom deal to increase BoE without (the banks) increasing other rates too much..?

Hardly likely as the banks have pushed up the cost of retail lending at a time of extremely low base rates

System

Radiantsoul wrote: »

Same.
I am not convinced there is a "natural rate" of interest that some people seem to believe interest rates are due to return to at some point in the near future.

I totally agree, people keep referring to this mystical "normal" that base rates should be at, there's no such thing.

gfplux

Will be the same or higher.
NOT lower

Batchy

raising the rates wont curb inflations VAT 2.5% rise effect on inflation... thats a fiscal adjustment, and no rate rise can stop it, or influence it.

Graham_Devon

Why have rates been put up in the past to combat inflation, if they can't combat inflation?

I've seen quite a few posts now saying the type of inflation we are seeing can't be combated by interest rates, but they certainly went up in 2006/7 to combat the same types of inflation (the biggest impact being fuel at the time).

Who re-wrote the rules?

mbga9pgf

Base or mortgage rate?

I reckon the Base rate may be a smidge higher, to placate the markets. 0.75-1.00%.

Mortgage rates will be significantly higher imho, as I reckon the BOE are going to hold back on QE and the finance is just not going to be there. I paid 2% over base on a 30% deposit. I reckon that will be more like 3% by this time next year.

mbga9pgf

Graham_Devon wrote: »

Why have rates been put up in the past to combat inflation, if they can't combat inflation?

I've seen quite a few posts now saying the type of inflation we are seeing can't be combated by interest rates, but they certainly went up in 2006/7 to combat the same types of inflation (the biggest impact being fuel at the time).

Who re-wrote the rules?

They are trying to devalue to stimulate the export market. Thats what changed.

JonnyBravo

nearlynew wrote: »

Trying to predict the actions of liars and thieves is practically impossible.

Eh?

Surely it's remarkably easy.

They will;
a) Lie a lot
b) Nick stuff

HTH

wymondham

nearlynew wrote: »

What?

You think the "government" is in control?

not control as such, but applying pressu to have the outcome it desires!