We’d like to remind Forumites to please avoid political debate on the Forum.
This is to keep it a safe and useful space for MoneySaving discussions. Threads that are – or become – political in nature may be removed in line with the Forum’s rules. Thank you for your understanding.
Debate House Prices
In order to help keep the Forum a useful, safe and friendly place for our users, discussions around non MoneySaving matters are no longer permitted. This includes wider debates about general house prices, the economy and politics. As a result, we have taken the decision to keep this board permanently closed, but it remains viewable for users who may find some useful information in it. Thank you for your understanding.
📨 Have you signed up to the Forum's new Email Digest yet? Get a selection of trending threads sent straight to your inbox daily, weekly or monthly!
When will UK interest rates rise? - Markets Suggest 1% is still 5 years away!
Comments
-
Harry_Boyle wrote: »Maybe. I think we can all agree that we won't see BoE rates at 4 or 5% any time in this decade.
I'm sure that in 2005 we would have all agreed there would be no chance of seeing 2% rates, let alone 0.5% rates in that decade.
Things change. Quickly.0 -
james_toney wrote: »seems amazing that they were once 4 or 5% i dont think we will see that againTurnbull2000 wrote: »Can't see that happening at all. We'll be lucky to breach 1% for a couple years yet IMO.Harry_Boyle wrote: »Maybe. I think we can all agree that we won't see BoE rates at 4 or 5% any time in this decade.
A trio of consensus. When everyone is the same side of the boat you can bet its not going to go to plan
We wont see 4 or 5%. We'll skip from 3 to 6 maybe, which should be impossible no doubt but the idea we are just like Japan is even more inaccurate unfortunately.
We dont have their savings, their trade balance was well in their favour even in 'recession'. They had alot in reserve and in their business to choose a path, we wont be choosing our rates unless we somehow make as much profitable business as they did0 -
Graham_Devon wrote: »I'm sure that in 2005 we would have all agreed there would be no chance of seeing 2% rates, let alone 0.5% rates in that decade.
Things change. Quickly.
I'm sure Japan's Gurahamu_Debon was saying the exact same thing in 1996.
Then again, Japan has a huge national debt, contracting economy, falling incomes and austerity measures, so there is no comparison with the UK. Yep, our rates will go up soon. 0 -
james_toney wrote: »yes, but could be years away, maybe 10 ? not going to happen in the next couple of years, or we could be like japan and have low interest rates for 20 years,
when do you think rates will be 5% how many years away?
Your guess is as good as mine but the balance of probability suggests it will happen.
http://www.guardian.co.uk/news/datablog/2011/jan/13/interest-rates-uk-since-1694
Roll over the line to get the data - choose which time period you want with the date sliders at the bottom. Chart full size"If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0 -
It seems that a base rate of 2% might be some years away.
Having said that, and as Graham pointed out, back in 2005, nobody would have thought that the base rate would go as low as 0.5%.
It must be somewhat comforting to someone with a large mortgage that it looks like rates will be staying low for a while (because they`ve been low for a while). I suppose if you keep telling yourself that rates won't be going up much for a long while, then you can convince yourself that they are guaranteed not to. One thing is for sure, life often throws up unexpected suprises, and the best thing you can do is try to prepare yourself in case those suprises are not so pleasant.
I think I stated earlier that I don't think that rates are going very far in the next year or two, beyond that, who knows for sure ?30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
It must be somewhat comforting to someone with a large mortgage that it looks like rates will be staying low for a while (because they`ve been low for a while). I suppose if you keep telling yourself that rates won't be going up much for a long while, then you can convince yourself that they are guaranteed not to.
As far as I can tell Renoman (I assume that's the 'someone'?) is arguing that rates will stay low for an extended period. There's no doubt that he hopes they'll stay low.
I've always thought that Renoman can identify the difference between what is a hope and what is an expectation. Being able to see the difference is skill that isn't widely possessed.0 -
It seems that a base rate of 2% might be some years away.
Having said that, and as Graham pointed out, back in 2005, nobody would have thought that the base rate would go as low as 0.5%.
It must be somewhat comforting to someone with a large mortgage that it looks like rates will be staying low for a while (because they`ve been low for a while). I suppose if you keep telling yourself that rates won't be going up much for a long while, then you can convince yourself that they are guaranteed not to. One thing is for sure, life often throws up unexpected suprises, and the best thing you can do is try to prepare yourself in case those suprises are not so pleasant.
I think I stated earlier that I don't think that rates are going very far in the next year or two, beyond that, who knows for sure ?
As the old adage goes, "hope for the best and prepare for the worst". With 5 year fixes at historical lows it seems a good plan for anyone with a large mortgage to hedge their bets and sort out a 5 year fix.
I have seen a 5 year fix with First Direct at 2.69%, which is probably the sort of rate that many people are getting on their trackers (my own rate has been 2.54% for the past 3 years). No unexpected surprises and 5 years to blitz a mortgage. Top notch. 0 -
Oh no, here we go again.0
-
As far as I can tell Renoman (I assume that's the 'someone'?) is arguing that rates will stay low for an extended period. There's no doubt that he hopes they'll stay low.
I've always thought that Renoman can identify the difference between what is a hope and what is an expectation. Being able to see the difference is skill that isn't widely possessed.
Derv swore that he wasn't obsessed with this 'RenoMan' character and that to prove it he won't be referencing him ever again in discussions. He swore that if he did refer to him again, then it proved he was obsessed and he wanted us to section him. Do you think Derv is still obsessing? I have "The Martin Lewis Sanitorium for the Forumnally Crazed" administrator on standby for him.......Mr._Pricklepants wrote: »Oh no, here we go again.
Indeed. Are you ready to receive the patient, Dr. Pricklepants?0 -
Harry_Boyle wrote: »Derv swore that he wasn't obsessed with this 'RenoMan' character and that to prove it he won't be referencing him ever again in discussions. He swore that if he did refer to him again, then it proved he was obsessed and he wanted us to section him. Do you think Derv is still obsessing? I have "The Martin Lewis Sanitorium for the Forumnally Crazed" administrator on standby for him.......
Indeed. Are you ready to receive the patient, Dr. Pricklepants?
I didn't think Derv did, thought it was wotsthat that did. Derv just said somone.
P.S. I know you can"If you act like an illiterate man, your learning will never stop... Being uneducated, you have no fear of the future.".....
"big business is parasitic, like a mosquito, whereas I prefer the lighter touch, like that of a butterfly. "A butterfly can suck honey from the flower without damaging it," "Arunachalam Muruganantham0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 352.2K Banking & Borrowing
- 253.6K Reduce Debt & Boost Income
- 454.3K Spending & Discounts
- 245.3K Work, Benefits & Business
- 601K Mortgages, Homes & Bills
- 177.5K Life & Family
- 259.1K Travel & Transport
- 1.5M Hobbies & Leisure
- 16K Discuss & Feedback
- 37.7K Read-Only Boards