Are the interest rates going to go down in the next couple of years?

noody123

Does anybody have any guesses as to if the interest rates are going to stabilize for a few years or go down again? Asking as i need to make a desiscion on renewing my fixed rate mortgage?

dunstonh

Possibly got another rise, maybe 2, depending on global events, before levelling off for a while and then dropping very slowly over a long period.

scottish_blend

would you say then, that my best option (being on a budget obviously :-) ) is a fixed rate remortgage for the moment then? Maybe on a 2 year deal to see what happens?

sm9ai

Well we are still 20% above CPI inflation.

June inflation was up for RPI and core inflation. The only one that went down was CPI which most people regard as complete rubbish anyway.

So in my view rates have still go higher to go. I would fix for a couple of years at least.

However we should know a bit more when the boe minutes are released.

TuftyMatt

I think a 2 year fix makes sense still even at the higher levels we are currently seeing.

Yesterdays numbers make us odds on for another rise soon and even if this turns out to be the last one I can't see anything that will make the rate drop off for a while. The last thing we need is for rates to start to fall then have to go back up as people feel rich and start spending hard again.

Plenty of people out there are going to have to pay much more each month as they come to an end of a "cheap" 2 year deal but most should have known that the days of cheap lending would not last forever.

By the way I have 2 years left of a three year fix at 4.74% from Britannia so hope that by then things would have returned to the good times!!

Pulse

We've gone for a 5 years fixed, just in case. If I was as ballsy as you, I would've gone for the 2 year, but we wanted 5 years of knowing what we're paying, lol.

noody123

Hi all, not sure about you but i have achoice of a 10 year fixed rate at 6.15% or a standard rate at 7.38%
Unfortunatly i don't have the money to buy into a 5 year at 6.64%
If its going to be like the last time the interest rates dropped it took 3 odd years if memory serves me right.
If on the other hand it is going to be a year it may be worth holding out for a better fixed rate deal.

UK007BullDog

If someone knows the true answer please give me the lotto numbers for friday and saturday night. Yeah!

PS: I will give a share of the winnings :j

ManAtHome

sm9ai wrote: »

Well we are still 20% above CPI inflation.

June inflation was up for RPI and core inflation. The only one that went down was CPI which most people regard as complete rubbish anyway.

So in my view rates have still go higher to go. I would fix for a couple of years at least.

However we should know a bit more when the boe minutes are released.

Well what you say would be the sensible view.... but

el BankO d'Exess minutes appear to have some reservations about putting rates up due to current levels of indebtedness... you couldn't make it up.

SAVEMEAFORTUNE

I got my first ever mortgage from HSBC 2 years ago paying 933 a month for 220,000 borrowed. Time to renew and the new offer is 1050 a month for 2 years and then more after that. Is there anything better out there or is it not good to switch. I know NOTHING about mortgages...

Save4ArainyDay

I think the whole financial situation is now well overheated. The US stockmarket is giong to come down with a bump shortly and we are already seeing a few big dips in the UK. We borrow more money on credit than anyone else in Europe and somewhere along the line we will have to pay the cost. My opinion is that we will see more rises until the balance between borrowing and industry output is judged by those in power to be at an optimum.
I heard last week that someone is offering a 25 year fixed mortgage - which you can get out of without penalties after 10 years - I was driving at the time and don't remember which bank/building society it was but it was a big name, if I was starting out now in the property ladder this would be attractive to me.
All my own opinion and I am not a finance expert... but I am (I believe) pretty shrewd on the money front. I wouldn't be here otherwise would I? ;-)


Here is a link to the article about the 25 year fix

http://money.guardian.co.uk/news_/story/0,,2124724,00.html