Worried about higher interest rates?

michaels

I am quite worried that with the global economy flattening and knocking on to the UK that we won't see the increases I was hoping for. Given current 5 year rates it will only be another 10 months until I would have been better off going for an uber low rate 2 year fix followed by a 5 year rather than the 5 year I took on 10 months ago.

bigheadxx

Voyager2002 wrote: »

Me!!!

And I can't believe my luck. I just wish I had a much larger mortgage.

I really don't see how not repaying the principal is a good thing long term. Yes the rate shock will be more severe if you are interest only but in reality the majority of people who have not made any kind of provision for repayment of capital, would not be staying in their homes long term anyway.

TedButlerstheman

If the recovery was real then rates would go up by now. We are keep on being told recovery when there is no recovery, things are far worse than the problems in 2008 that were just papered over.

If you have an old wall with damp coming through (the new international currency system in 1971) it needs ripping off and replastering. But dodgy builders think it would be easier and cheaper to stick thick lining paper over it for now and paint it. As long as their cheque clears before it starts peeling off and damp comes through again they will be long gone with a changed phone number.

In the case of the bankers they are papering over the global financial crisis since 2008 with currency abuse and manipulations and weapons of mass financial destruction. But they can't just change their number and disappear like a cowboy builder so some are getting a fall guy to take the blame others are faking their own death or genuine suicide.

Thrugelmir

bigheadxx wrote: »

would not be staying in their homes long term anyway.

Where are they going to live? A property is a home. Once paid for a home gives security. Something that people rightly aspire to.

onlyroz

I'm on base plus half, part IO part repayment. Long may the rates stay low...

Thrugelmir

onlyroz wrote: »

Long may the rates stay low...

Would you be happy with deflation then? Most people are hard wired for inflation.

TedButlerstheman

Thrugelmir wrote: »

Would you be happy with deflation then? Most people are hard wired for inflation.

It is no longer a question of if or when, we ARE in deflation.

Thrugelmir

TedButlerstheman wrote: »

It is no longer a question of if or when, we ARE in deflation.

There's an argument for both sides of the coin at the moment. No one can be sure of the impact of the money printing presses. The ECB may yet inject 1.1 trillion Euros into the global economy.

Or is a race to bottom in the Western world?

James_B.

Voyager2002 wrote: »

Me!!!

And I can't believe my luck. I just wish I had a much larger mortgage.

Base rate flat, for the life of the mortgage?

I find that pretty hard to believe, are you certain that is was not base rate plus a margin?

jamesperrett

James_B. wrote: »

Base rate flat, for the life of the mortgage?

I find that pretty hard to believe, are you certain that is was not base rate plus a margin?

Margins were less than 0.2% in the mid 2000's.