When will interest rates rise?

sabretoothtigger

They may never raise the rates again. They could continue to let the worth of currency fall till it is just paper with some writing about a promise on it.

Then they will have a new currency, new paper and the rate to borrow it will be like 5%. The old stuff will be free for all


However Sterling is the oldest currency in the world so far as I know so I presume they would take extreme measures rather then let that occur.
That might mean low rates continue till obvious disaster confronts us and extremely high rates at a later date

Basically we are tied to the USA

someone living "close to the edge".

and on a moneysaving site of all places, disgusting :laugh:


My own guess for a rate rise would be like December unless Europe has more influence then I thought. Or other parts of the world somehow force a decision sooner.

I think a rate rise will be done in a haste reaction rather then any careful decision taken in anticipation

lostinrates

vivatifosi wrote: »

I'm not a house price follower tbh, more interested in discussing the economy, I just don't understand why people feel priced out and then expect to move straight into a house with several bedrooms. Surely you'd get a flat in your twenties and then move up to something bigger in your thirties.

For us it was because things weren't settled enough. More people are graduates, more graduates follow work....around the country, overseas etc, I think more people who aren't graduates are open to moving too...probably because of greater communications/availability of private transport.....but all this leads to a sense of less permanence in living arrangements. Ithink partly, this lack of permanence also feeds back making some wary of it and have a different outlook to the generation before. Even if wages keep up with house prices, until recently there was the huge stamp duty amount growing too (until things were lifted for FTB) and the idea of buying for a couple of years could be offputting too...its a big whack of money for serial movers.

It would be interesting to here from some in their early twenties to know if they feel the same now as ''we'' my friends and I did then.

StevieJ

shortchanged wrote: »

I just looked at some properties in Chester on rightmove StevieJ. Prices seem to have dropped quite a lot there over the past few years.

I always remember Chester as being quite an expensive place to buy a house.

Prices are down about 15% from peak, Chester has never been that expensive compared to the benefits of living there.

new_home_owner_3

its great for a lot of people who got on trackers plus 0.49 percernt before the interest rate fall, but people who have signed up for plus 2 percent trackers are going to be in for a big shock.

i see now they are doing boe rate plus 4 percent who would be a big enough mug to have a mortgage like that?

It only took 6 months to get from 5 percent to 0.5 percent.

i think by the end of the year interest rates will be on the way back up, not massive percentages i reckon about 3 percent.

DervProf

new_home_owner wrote: »

i think by the end of the year interest rates will be on the way back up, not massive percentages i reckon about 3 percent.

3% will seem massive to many.

I reckon base rate will be 1% by year end, and the weeping and wailing will still be quite loud.

IveSeenTheLight

new_home_owner wrote: »

i think by the end of the year interest rates will be on the way back up, not massive percentages i reckon about 3 percent.

You seriously think the BOE base rate will be 3% by the year end.
Will the UK economy be well on it's way of sustained growth?

IveSeenTheLight

DervProf wrote: »

3% will seem massive to many.

I reckon base rate will be 1% by year end, and the weeping and wailing will still be quite loud.

I could have imagined base rates being 1% by the end of the year, but that seems to be becoming less likely as each month rolls by.

I'm now starting to think we wont see rate rises until spring next year.

new_home_owner_3

IveSeenTheLight wrote: »

I could have imagined base rates being 1% by the end of the year, but that seems to be becoming less likely as each month rolls by.

I'm now starting to think we wont see rate rises until spring next year.

september 2008 boe rate 5 percent, april 2009 0.5 percent, i can see the rates climbing the same way as they went down, but i dont think they will go much above 5 percent.

DervProf

new_home_owner wrote: »

september 2008 boe rate 5 percent, april 2009 0.5 percent, i can see the rates climbing the same way as they went down, but i dont think they will go much above 5 percent.

I really can't see rates going up as quickly as they fell. The reason they fell so fast was "to save the economy". In other words, we were upto our eyeballs in debt. Consumer debt is still a burden, so for the same reasons they cut rates, they won't want to raise rates, well not rapidly anyway.

Graham_Devon

vivatifosi wrote: »

Sorry Graham, I'm not getting it. Surely if they are buying at 32 because they want a house - which they are clearly doing to buy at that price - then why wouldn't they buy their first place a few years earlier for a lower amount and trade up when they need a house.

I'm not a house price follower tbh, more interested in discussing the economy, I just don't understand why people feel priced out and then expect to move straight into a house with several bedrooms. Surely you'd get a flat in your twenties and then move up to something bigger in your thirties.

There are absolutely loads of reasons the average age of a FTB is 32 and they haven't bought masionettes or flats beforehand.

Uni. Not settled. Simply not enough money due to high house prices.

And once they are actually at the stage of buying the house, and having gathered the means to do so, they are highly likely to be doing so as a couple, most possibly with children. Therefore, need a house with a couple of bedrooms or more.

All I can say is, these are the statistics. Its not me making things look hard, or trying to spin something. The statistics are what they are and they are showing those statistics for several reasons. Yes, some people will say FTB's want it all. Yes, some people wil suggest they could buy a mainsonette at 23. BUT. For most, according to the statistics, regardless of whether we don't get it, it simply doesn't work.