Interest rates up or down

marnstars

lisyloo wrote:

The BOE meeting was postponed to 9th May some time ago.

No change to the base rate today, how does that bode for the future?

Certain manufacturing sectors seem to be struggling and in need of a rate reduction. No immediate chance of going into the Euro. The hikes up to the current level have curbed the housing market - the main stumbling block seems to be high street spending and inflation?

AND MY FIXED RATE OF 3.39% IS UP IN JUNE! WHERE NOW?

Fixed / Discount / Tracker?

meanmachine_2

marnstars wrote:

No change to the base rate today, how does that bode for the future?

Certain manufacturing sectors seem to be struggling and in need of a rate reduction. No immediate chance of going into the Euro. The hikes up to the current level have curbed the housing market - the main stumbling block seems to be high street spending and inflation?

AND MY FIXED RATE OF 3.39% IS UP IN JUNE! WHERE NOW?

Fixed / Discount / Tracker?

Economists can never agree on this.

Some are predicting rates will be back to 3.5% in 18 months' time, others that they will be higher, at around 5.5%

Sadly, it matters not one jot what is happening on the high street, if US rates go up (as they have been), then ours do as well. Sorry mate. I think the cheapest fixed rate is now around 5.5% But does it matter that much? Rates are still incredibly low. Just be thankful that they're not back to where they should be - around 8%!

The biggest threat facing the UK economy right now is the Chinese currency. If they revalue (ie upwards), then the whole globe is set for a period of higher inflation (chinese goods cost more, and since we import so many, guess what happens to prices...)

lisyloo

Personally I think rates will go down.
I agree with Roger Bootle from Capital Economics.

He forecasts rates will be down to 4.5% by the end of the year and 3.5% by the end of 2006.

There are some very negative signals around right now if you look for leading indicators.
Estate agents income must be significantly down.
Mortgage approvals are at record lows.
Retail and manufacturing doing very badly and finally advertising down (which follows a recession apparently).

I am suprised that we haven't seen more redundancies already, but I think it will follow.

However all IMO and do your own research etc.

I will be getting a variable rate however.

michaels

On average you will pay a little more for a fixed rate - the banks work out what the average rate is likely to be for the fix period and add a little as this it costs them money to lock in the fixed rate on their side - tyou may or may not be willing to pay this little bit more for peace of mind - each individuals choice.

RACHIE77

I've found all this info really helpful, we are on a fixed rate with nationwide at the moment and it is due to end at the end of June, I am not clued up about these things at all and dont really want to move mortgages as we are tied to going for self certficiation at the moment and its always been a lot of hassle.... When our fixed rate ends Nationwide want £398 - i think - to transfer our existing borrowing on to one of their other products, be it fixed rate or tracker (i think thats what they said) and I'm not sure what to do. We're on a good rate at the moment (4.99% i think) but am really unsure what to do next and if it is worth paying the fees etc..... I know it will depend on a lot of things and i'm sorry for being vague but any help appreciated??

Rachie