When will interest rates rise?

Alias_Omega

I really would like interest rates to increase.

We fixed our mortgage at 6.02% for 5 years, our remaining balance is just over £36,000 on it.

We have about £16,000 split between some e-ISA's which earn a poor 2% & 2.5% interest. We cant pay the £16,000 into the mortgage until the fixed term is up. We would switch it to another bank, but we want to keep it in the same bank for easy-online access if needed.

The only way this ISA will gain a higher APR is with the interest rates increasing. So instead now to compensate we overpay by £500 per month on the mortgage, and what else is left at the end of the month we can save on top of that tops up the ISA's.

lisyloo

The only way this ISA will gain a higher APR is with the interest rates increasing.

err no - you could switch it to something higher with near instant access.
It's your choice not to.
I'm not saying your choice is wrong, but it is your choice to accept lower rates.

I don't think your case is compelling at all.
You want higher rates for businesses nationally so you can get more money on your ISA??

Switch it or invest it in something better.
I don't think you are making the most of it even if you want to leave it in safe cash.

HAMISH_MCTAVISH

Graham_Devon wrote: »

If what you say does happen, there will be a collosal crash, and nothing this time we can do to prevent it.
.

Crash, crash, crash, crash, crash, crash, crash.....

Prices rising, there will be a crash according to Graham, prices stagnating, there will be a crash according to Graham.

Economy recovering, doesn't matter, there will be a crash according to Graham. Unemployment falling, doesn't matter, there will be a crash according to Graham.

Increase in demand, falling supply, soaring rents, none of it makes a difference, because there will be a "collosal crash" according to Graham.

In fact, nothing matters, no data is relevant, because according to Graham there simply MUST be an almighty crash and there is no other possible outcome to any situation.

Graham, you're reaching Brit1234 levels of delusion and denial now.....:rotfl:

undetterred

Alias_Omega wrote: »

I really would like interest rates to increase.

We fixed our mortgage at 6.02% for 5 years, our remaining balance is just over £36,000 on it.

We have about £16,000 split between some e-ISA's which earn a poor 2% & 2.5% interest. We cant pay the £16,000 into the mortgage until the fixed term is up. We would switch it to another bank, but we want to keep it in the same bank for easy-online access if needed.

The only way this ISA will gain a higher APR is with the interest rates increasing. So instead now to compensate we overpay by £500 per month on the mortgage, and what else is left at the end of the month we can save on top of that tops up the ISA's.

Take the hit on an ERC and get another deal.

Graham_Devon

I'm in denial?

For stating that we'd have a collosal crash if we had a boom based on current policies, which are set at these levels purely to stop an economic catastropy?

You've just ignored what I was responding to, haven't you. Ignorance does seem to be your best debating tactic.

HAMISH_MCTAVISH

Graham_Devon wrote: »

I'm in denial?

For stating that we'd have a collosal crash if we had a boom based on current policies, which are set at these levels purely to stop an economic catastropy?

The next boom is now absolutely inevitable.

And it's based purely on the fact we're building the lowest level of houses since the late 1800's and the biggest generation in history is about to reach FTB age..... Bigger even than the boomers.

The trough of the demographic cycle is now, when there are somewhere around 740,000 people per year of FTB age.

That increases every year from now until 2021,peaking at almost 1,000,000 per year.

The boom will happen, no matter what you do. There is no longer enough time to build the required number of houses.

The crash so many people cheered on has caused the next boom..... And ensured it'll be bigger than the last one.

A delicious irony in that.

Graham_Devon

HAMISH_MCTAVISH wrote: »

The next boom is now absolutely inevitable.

And it's based purely on the fact we're building the lowest level of houses since the late 1800's and the biggest generation in history is about to reach FTB age..... Bigger even than the boomers.

The trough of the demographic cycle is now, when there are somewhere around 740,000 people per year of FTB age.

That increases every year from now until 2021,peaking at almost 1,000,000 per year.

The boom will happen, no matter what you do. There is no longer enough time to build the required number of houses.

The crash so many people cheered on has caused the next boom..... And ensured it'll be bigger than the last one.

A delicious irony in that.

Yawn. Is there any point in me talking about anything or discussing any of what you just said? You are being pulled up on this stuff all over the house buying board, and simply ignore it and state it over and over.

You are simply ignoring everything.

It's like me ignoring everything else and saying "prices should be 3x wages, therefore prices will fall, end of".

You've even ignored everything I said directly in response to my post. I was talking about the type of crash that sort of boom will cause. First you laughed at me, after ignoring what I was responding to. Now you are ignoring the crash part I was talking about to tell me about the boom aspect. Boom....it's all you wish to talk about.

DervProf

Alias_Omega wrote: »

I really would like interest rates to increase.

We fixed our mortgage at 6.02% for 5 years, our remaining balance is just over £36,000 on it.

We have about £16,000 split between some e-ISA's which earn a poor 2% & 2.5% interest. We cant pay the £16,000 into the mortgage until the fixed term is up. We would switch it to another bank, but we want to keep it in the same bank for easy-online access if needed.

The only way this ISA will gain a higher APR is with the interest rates increasing. So instead now to compensate we overpay by £500 per month on the mortgage, and what else is left at the end of the month we can save on top of that tops up the ISA's.

A "homeowner" who doesn't appear to have had a little help from the BoE. I'm sure there are plenty more in a similar position. I am sorry to see that you have been able and sensible enough to accumulate some savings, yet are losing out through not having a flexible mortgage. That's a real double whammy. I take it you haven't got too long to go on the current mortgage deal. You might be lucky to be able to get a new deal at a low rate, but interest rates (that the banks charge) are not looking like they are going to get any cheaper in the near future.

Theone1_2

Will there be many more distressed sellers when interest rates go back up?

lisyloo

Will there be many more distressed sellers when interest rates go back up?

Possibly some.
But there is also a theory that interest rates will only rise as the economy recovers.
This means that there wil be lower unemployment, payrises, bonuses, overtime etc.

However those people who have over-borrowed could find themselves in trouble.

I believe interest rates will go up very slowly, which will allow the majority to sort themselves out
e.g. put their payrise towards the increasing mortgage costs.

Whilst the BOE don't target house prices, I don't see them putting up rates if it would cause massive repossessions.
That would hit the economy and be counter productive so why would they do that?
I only see very slow rate rises, which is bad news for savers.