Interest rate rise likely this year

wotsthat

purch wrote: »

If the Bank raises interest rates in the near future, there is more chance of longer term rates going down, than there is of them rising.

If you have a mortgage you should be applauding the Bank for doing the sensible thing, and ensuring the long term success of the economy and therefore keeping your mortgage rate lower than it might otherwise be if they didn't.

Not thought about it that way.

We're hovering around around historic lows for a 5 year fix of 3%. If we're about to meander our way up to around 3% base rates it's hard to see 5 year rates doing anything other than increasing from here.

pbouk

wotsthat wrote: »

No chance - I've been reliably informed that there can be no rate rise until after the election.

A rate rise after the election would be proof of political intervention and one before indicative of 'manouvres'.

You are not that reliably informed then.
:rotfl:

wotsthat

pbouk wrote: »

You are not that reliably informed then.
:rotfl:

Sorry - I meant 'reliably informed'.

andrewf75

Bantex wrote: »

Anyone who cannot handle a quarter or half percent rise on their mortgage, should never have taken out a mortgage in the first place.

I would suggest anyone who can't handle a 3 or 4 % rise shouldn't have

mayonnaise

Bantex wrote: »

Maybe an intelligence test could be part of mortgage applications.

Yeah, with exercises on percentages and a spelling test containing loads of apostrophes and the word 'tripple'. I'm all for it. :rotfl:

kwmlondon

andrewf75 wrote: »

I would suggest anyone who can't handle a 3 or 4 % rise shouldn't have

It's a fair point, and I've always thought along those lines for my own planning. However, we in the UK are much more speculative than other countries in Europe - you'll find a lot of 10 year fixed rate mortgages in Germany than here. Not saying that it's better or worse (we've reaped the benefits of low payments with so many base-rate tracker mortgages but it means many people will be in difficulty when rates rise) but if 10 fixed rates were a bit better in the UK I'd probably go for one just for the ability to have a predictable expense. Dunno.

The_White_Horse

an american was telling me that over there, the longer you tie yourself in for, the better deal they will give you.