Where do you think mortgage rates will be in 4-5 years time?

thomasdown

Hi there guys,

I was a 1st time buyer up until a few months ago and was lucky enough to get a 5 year fix with HSBC for what I think was a good rate of 4.89%. Where do you think mortgage rates will be in 4-5 years time. Obviously know-one has got a crystal ball and can predict whats going to happen but it would be good to see what people personally feel where mortgage rates will be in 4-5 years time? Obviously if people think rates will go sky high, then me and my fiancee will need to possibly look at raiding our savings which we are gradually getting back up again (after a expensive few months) to subsidize the higher rates. We are hoping with the extensions and modernisation of our property that we should be in the 60 - 70% LTV bracket, when we have to re-mortgage. It's good to plan I feel but hopefully not to worry?

Your thoughts and opinions are more than welcome.

SteveV2

Might go up 1% but doubt it.

Thrugelmir

Personally I would overpay the mortgage to reduce any possible impact of interest rate rises, or any other unforeseen financial events.

Whilst you may spend money on the property, the value could still fall.

At 60% LTV mortgage interest rates hit their optimum level.

poppy10_2

6-7% .

Euphoria1z

BOE rate around 3.5%

DannyboyMidlands

I think that BoE rate will still be around the current level but new mortgage rates will be much higher. That's why I reckon cheap, lifetime base rate trackers are the currently the best bet.

opinions4u

Economists usually answer this question wrong.

So the expertise of an internet forum should get closer to reality.

Throw two dice. Average out the score. You'll be within 3% of base rate in 5 years. Possibly.

midnight_express

The BOE rate is 0.5% - the only way is up.

somethingcorporate

Either the same as they or now. Or higher.

HappyMJ

I bet 3-4 years time they will start increasing and 5 years maybe 3% base rates. Then again I might be completely wrong. I would prefer they started increasing during next year some time and get to 5% in 5 years time hopefully reflecting a good economy with some good solid growth.

opinions4u

I want low interest rates.

Lower inflation.

Modest growth slightly higher than interest rates and inflation.