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3yr fixed or 5 yr fixed? Who wants to predict interest rates between now and 2020?
ambioni
Posts: 114 Forumite
Anyone want to have a shot at predicting interest rates between now and 2020? My own view is that by 2020 we will be sitting at around 2%, making 5yr deals attractive if the fixed rate stays below the lender's SVR (e.g. 5 yr fixed at 4.09% with current lender SVR at 3.99% beats a 3yr deal at 3.89% if rates go up). I am thinking we will see a rise in rates from mid-2016 on, maybe 0.5% per year, but never topping 2%
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Comments
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Personally I think higher by then - more like 3%. First rise .25% q1 2016.0
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Well this is what the market thinks: http://www.bankofengland.co.uk/statistics/pages/yieldcurve/default.aspx
No investor has ever been able to consistently beat the market, so I'm not sure what you expect to get out of this question. When rates first hit 0.5%, how many people expected them to still be at 0.5% in 2015? If you believe strongly in the views you've stated, then organise your investments/debts accordingly.Let's settle this like gentlemen: armed with heavy sticks
On a rotating plate, with spikes like Flash Gordon
And you're Peter Duncan; I gave you fair warning0 -
Who knows?
I re-mortgaged in Dec 2013, expecting rates to have increased by now, so took a 5 year fix at 3.09%, seeing how things have gone since I wish that I'd taken a 2 year fix that would have been around 1.5%.1.75%, then taken a 5 year fix later this year. But of course hindsight is a wonderfully useless thing!
A lot of it will come down to your own personal attitude to risk, and how financially well placed you will be to cope should any gamble not pay off.0
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