Will we see 7% fixed rate 1yr ?

ashm1

Will we see 7% fixed rate 1yr ?

http://www.forbes.com/markets/feeds/afx/2007/09/06/afx4088179.html

Or would the BOE intervene ?

Stephen_Leak

With my luck (I got my A&L 6.17% current account just before they put it up to 6.5%), they will do this just after I transfer my 5.75% variable ISA to a 6.2% 1 year fixed one!

isofa

The BoE left rates alone yesterday, but it's likely they may go up at least once more this year, but news reports yesterday suggest banks might put their borrowing and saving rates up anyway... keep a close eye, maybe some good fixed rate deals around the corner, Derby's already at 6.8% http://forums.moneysavingexpert.com/showthread.html?t=544881

ashm1

6.9% seems like the best

influence

http://www.everyinvestor.co.uk/personal-finance/savings/sub-prime-crisis-good-news-for-uk-savers/e/150-1189

While I think there might be a chance some banks will start increasing the rate further, it might not be a good sign. It probably mean that those banks need CASH urgently.

From what I believe that bank of england might hold the rate for the rest of this year. It will probably not going to raise any further or it is going to hit hard to mortgage borrowers and other big borrowers.

It is now up to the banks (small ones especially) to put up competitive rates to get as much cash as possible.

My view

Old_Slaphead

influence wrote: »

http://www.everyinvestor.co.uk/personal-finance/savings/sub-prime-crisis-good-news-for-uk-savers/e/150-1189

It is now up to the banks (small ones especially) to put up competitive rates to get as much cash as possible.

Why would they need that if customer borrowings are gonna be reigned in?

eslick

the are so many questions and answers and who really knows but some economist say the rate could fall next year

http://www.thisismoney.co.uk/investing-and-markets/article.html?in_article_id=424080&in_page_id=3&ct=5

ManAtHome

Old_Slaphead wrote: »

Why would they need that if customer borrowings are gonna be reigned in?

The rate of increase may well drop, but still 1.3+ trillion quid out there in loans. If you have a nominally 25 year mortgage which you're changing every 2 or 3 years, the same or next lender is going to have to borrow the next lump of dosh (at current rates) every time you re-mortgage - hope that makes sense.

Thomas_Crown

ashm1 wrote: »

6.9% seems like the best

6.9% - where is that available? Thanks.

The highest 1 year fix that I've seen is the Derbyshire Building Society 1Year Fixed Rate Bond (Issue 152) paying 6.85% which was launched yesterday (7/8/07). I was about to invest in the Birmingham Midshires 1Year Bond @ 6.7% but I am going to pass on that account now.

Speculator

Anglo Irish 6.90% 1 yr Bond

see other thread.