Loan before rate rise

Guru86

Good evening

We have recently moved to a new house and need to do a few improvements. We currently have a loan with 6 grand left on it. I have worked out we need another 5 to do everything.

I was going to wait until the new year but concerned about the interest rise from BoE which looks like will be in the new year.

Should I get the loan now whilst the product interest rates are so slow or run the risk and wait until the new year?

Thank you

PeacefulWaters

The next rise will be 0.25%.

tomtontom

You should get it on October 6th.

TrustyOven

Guru86 wrote: »

Should I get the loan now whilst the product interest

Save up the money and do the improvements with your own hard cash.

Guru86 wrote: »

rates are so slow or run the risk and wait until the new year?

Or run the risk of even more loans, and the associated risks.

Does this make sense to everyone:

risk (getting extra loans and having extra loan repayment burden) < risk ( saving up and not using a loan )

Doesn't make sense to me.

Money_maker

^^^^^^^^^^^^^^^^^^^
'Need to do improvements' can wait until you can afford them.

andyfromotley

interest rates aren't going up any time soon.

slenderkitten

so when is the Bank of England rate rise?

andyfromotley

Who knows?
The last MPC meeting 1 person voted to increase rates. 1 person voted to decrease rates. the rest voted for no change. These things historically gather a head of steam one member at a time, they meet once a month, so i reckon no rate change this year. Possibly till the middle of next year.

A lot depends upon the fed, they just voted no change.

But with weak growth the recovery looks pretty fragile so there is no immediate rush to increase rates.

But i like everyone else have no real idea. Top banks employ rocket scientists to try and second guess these decisions and even they don't know.