Simple Question: Interest Rates. Where will they be in three years' time?

Caffca

stoke_bishop wrote: »

Is everyone being purposely obtuse?
I would expect a financial adviser to be able to compare and contrast the risks involved in staying on my current tracker and taking a fixed rate for three or five years. This is the question that I have been asking my IFA. He is incapable of providing me with a comparison of the risks.

As for this thread, the original question is a way of me expressing the question in very simple terms. But I would expect my IFA to be answer me with a list of pros and cons of various products. Good grief!

No one is being obtuse. It's an impossible question to answer. No one knows what the interest rate will be in 3 years time - not even the BoE.

I'm sure he's told you the benefits of a tracker - if rates drop, what you pay drops and the risks - if rates go up, what you pay goes up.

Perhaps you need to go back and ask him a specific question e.g. if I went on the tracker and rates hit 8% what would be the impact? Secondly, if I went on the fixed and rates went up, what would be the impact of that.

He is never going to tell you what the interest rates will be simply because he doesn't and can't know. If he did, then would be the time to be worried about him being an idiot - what if they weren't the same as he predicted - you'd then be looking to sue him for giving you incorrect information. Poor bloke can't win.

stoke_bishop

Caffca wrote: »

No one is being obtuse. It's an impossible question to answer. No one knows what the interest rate will be in 3 years time - not even the BoE.

I'm sure he's told you the benefits of a tracker - if rates drop, what you pay drops and the risks - if rates go up, what you pay goes up.

Perhaps you need to go back and ask him a specific question e.g. if I went on the tracker and rates hit 8% what would be the impact? Secondly, if I went on the fixed and rates went up, what would be the impact of that.

He is never going to tell you what the interest rates will be simply because he doesn't and can't know. If he did, then would be the time to be worried about him being an idiot - what if they weren't the same as he predicted - you'd then be looking to sue him for giving you incorrect information. Poor bloke can't win.

OK, I'm sorry for getting agitated.

But it's pretty clear to me what my mortgage payment will be on different products for different base rates/mortgage rates. I can actually work this out myself.

What I need is advice regarding risk!!! If I go for three years v five years for example.

OK, let me post it this way with a little more detail on top... <<see new thread for restructuring of question>>

Conrad

Mate, c'mon your being ridiculous.

Warren Buffet, the worlds richest man brushes aside these types of question as they are non sensical.

All one can do is consider rates may go up and if that is a risk too far for the individual then fix.
Money matters cannot be subjected to scientific enquiry in the manner you expect.

Trying to illumate the future of rates is literally as difficult as predicting the weather in years to come.

Imagine you did get your IFA to hang his mast on a set of robust predictions - you'ud sue him all the way to the Bank if he calls it wrong.

I

Caffca

Link to new / continuation thread started by OP here

http://forums.moneysavingexpert.com/showthread.html?t=818449

stoke_bishop

Conrad wrote: »

Mate, c'mon your being ridiculous.

Warren Buffet, the worlds richest man brushes aside these types of question as they are non sensical.

All one can do is consider rates may go up and if that is a risk too far for the individual then fix.
Money matters cannot be subjected to scientific enquiry in the manner you expect.

Trying to illumate the future of rates is literally as difficult as predicting the weather in years to come.

Imagine you did get your IFA to hang his mast on a set of robust predictions - you'ud sue him all the way to the Bank if he calls it wrong.

I

I've restructured my question in a hopefully slightly less dumb way.
I'd appreciate any comments to the "restructured question" thread. Cheers :-)

allan673

no one knows is the simple answer, especially if there is a change of government?
they could control interest rates rather than the bank of england.
if your worried then fix for 5 or 10 years?
ive just fixed at 5.15% for 10 years for security (first direct i started application in feb), a very good rate i think as 3 years ago i fixed at 4.95%.

Noz

stoke_bishop wrote: »

OK, I'm sorry for getting agitated.

I accept your apology.