2024/2025 rates

Moneysavernov

Intrested to see what everybody else thinks the bank rates will be by this time. 

I’m still undecided with my situation to pay a 2.5k early fee and fix these rates atm as there’s a very good chance rates are hitting 5% next year. 

I’m thinking  5% base rate by 2024 so cheapest mortgages 6-8%

what’s everyone else’s thoughts? 

Zoe02

High in the short term 6/7%

in the next 2-3 years might come down to 3/4%

Saint84

I have decided to fix at 3.65 for ten years (no intention of moving) and will aim to pay off.

I have 6 months to decide 

Cheesy77

The million dollar question, impossible to predict unfortunately. 

At the moment there's a wide range of views on how high they'll get based on the current situation. So much can change by then, including a general election in May 2024. 

My view is that they'll peak at a certain level and then will be lowered again, not the the rates we've seen the last 15 years but somewhere between. 

With the current government banging on about growth, inflation forecast to finally start falling, and a recession looming, that doesn't point towards medium/long term base rates of 5-6%. We all know what happened last time there was a recession, rates were cut to near zero to try and stimulate the economy....where they have remained for too long.

But who knows! 
 

simon_or

I think fixed mortgage rates will stabilise in the 4-6% range over the next few years.

I don't see the boe rate falling back to the recent almost-zero lows unless we have a multitude of bad events and I don't see the base rate staying a lot higher than 3% given the massive indebtness (compared to the early 80s era of ultra high interest rates) across the corporate sector and private households. The economy simply wouldn't be able to take it.

london21

When things calm down think mortgage rates will not be in the 1% but more 2-4%.

For the next 1-2 years more like 5-7%

Seraphi

Zoe02 said:

High in the short term 6/7%

in the next 2-3 years might come down to 3/4%

They might not though. The confidence interval is really broad. 

Historically, interest rates are quicker to rise than they are to fall.

Whilst I wouldn't be surprised to see your prediction it also wouldn't surprise me at all to see a rate in the low 5% range in a few years. 

dunstonh

Never ever try predicting interest rates.   They are influenced by things that are largely unpredictable.