what to do with regards to re mortgage?

stutakesphotos

I think Radionotme provides a good example. However, as they pointed out

Radionotme wrote: »

If rates rise by 0.5% per year...

That's way simplified though, and rates won't rise in such a straightforward manner.

The risk is that it will be up to 1.25% this year, but then steadily rising during 2012 and 2013 so that it ends those years at 5 or 6%. Before you know, come 2015 or 2016, it could be close to 10%.

That's probably a tad extreme, but I'd anticipate it being between 5% and 8% in 4 or 5 years

Radionotme

Maybe I'm being a tad naive here, but the bank have been scared stiff to raise rates for ages now due to the fragile state of the economy, and that's just from 0.5%. I can't see interest rates shooting right up to beyond 5% so quickly.
I certainly think we'll have rate rises before the end of the year to take us to 1%, but I can't see us reaching a 'normal' level of 5% just over the course of 2012.

Or maybe I'm just being hopeful

Wh05apk

Radionotme, I hope you are not being naive, as that is exactly my view, we are in a total mess, if they raise rates considerably, then all that will do is extend the problems for longer, possibly throwing us back in deeper.