Interest Rates going back up to normal levels again?

AnotherJoe

compHunter wrote: »

Selfish love for the low interest rates keep my mortgage down. The more I can get paid off before they rise the quicker I can get to "FIRE"

Actually the more you can accumulate in investments the quicker you can get to "FIRE". Overpaying mortgage at low rates will hinder FIRE, not help.

silverwhistle

sevenhills wrote: »

What will be a 'normal' rate with a Jeremy Corbyn Government?

Less than the 16% I was paying under Margaret Thatcher..

The-Joker

silverwhistle wrote: »

Less than the 16% I was paying under Margaret Thatcher..

16% is not normal, the average is several percent over the last few hundred years. The last ten years has been very very unusual and not normal.

Everything corrects to the norm eventually, its amazing interest rates have stayed this low for so long, it will not be surprising if they overshoot up on the correction.......

westernpromise

The mortgage rate norm's about 4%. The aberration was 10%. The base rate has only been above 10% in 20 of the last 300 years and all 20 were between 1970 and 1995.

The fall to 4% was the correction.

westernpromise

Mortgage rates currently are normal.

fewcloudy

AFF8879 wrote: »

Surely if they stay “low” for even longer, then low becomes normal?

I wondered something similar about a year ago...

https://forums.moneysavingexpert.com/discussion/5648135/what-are-normal-interest-rates


I reckon there's an interest rate figure that old guys think is normal, and there's a rate that young people think is normal!:p

Hmmm, I'm telling young colleagues in their 20' and 30's what the interest rates used to be before they were born... is that actually helpful or ... maybe just interesting?
Like me hearing from dad how much a car cost in the 70's...

I'm not convinced that the rates I happened to be paying in the 90's earned the right to be the 'normal' rate...