Interest Rates

Ganga

Hi i know no one can see into the future but what do the experts ( i am not being funny but the people who post on here seem to know what they are talking about) think will happen to interest rates in the near future, the reason i ask the question is we have just bottled out of a 5 year tracker in favour of a 5 year fixed rate 4.09%, i know this is our decision but with the luck we have had in the last 20 years with this house ( fixed at 12.6% when we bought it, the rate dropped within months, bought on an endowment etc.) what ever we have done seems to be the wrong decision.( we are very happy with the house and one day when it is paid for, if we live that long will look back and laugh )

Regards:beer:

ACG

I personally think the base rate will remain as it is for the next 2 years maybe. Then it will very slowly rise over the next couple of years.

However, that doesnt mean the banks base rates will remain at 0.5% (as we have seen with halifax and RBS recently).

I dont know your loan to value, but a 5 year fix at 4.09% doesnt sound too bad...i think in the next near or so you might be worse off but towards the end you will probably be better off - it might not balance out totally but im sure overall youve probably got a decent rate.

Thrugelmir

The important factor is the follow on rate not necessarily the rate you are currently on. Any rate of 2% to 2.5% for life above BOE base rate may well look good in a few years time. A fixed product is only ever temporary. Lenders appear to be enticing borrowers with attractive rates now. Knowing that they've trapped them into higher rates later on.

Whatever rate you are on. Take the opportunity to pay your debt. As ultimately that's the best way of saving interest, i.e. by owing less.

Ganga

Thanks to Thruglemir and ACD, this will hopefully be the end of the morgage,we bought the house late in life and as we are now in our 60,s if we do not pay it off will not get another chance however with switching to a lower rate and overpaying we should have it paid off in less than the 5 years( i am the main earner and 62 this year but can work on after 65) I hope our son when he inherits it appreceiates it:rotfl:

Regards

Thrugelmir

Ganga wrote: »

i am the main earner and 62 this year but can work on after 65

Age catches up with us all at some point. Some earlier than others. So pay down that mortgage as quickly as you can.