interest rate predictions 2008/9

paul_olivier

got the choice between a fixed rate or a BOE tracker, with the recent reduction in rates they are now more or less the same cost. always had BOE tracker up to now, the fixed rate is for two years. my gut feeling is that rates might go down 0.25% later this year but with the doom and gloom predictions are they likely to go up in 2009 to curb inflation? anyone got a crystal ball?

Treadmill

Rates will go as low as 3.50-3.75% before creeping back up slowly, I reckon it will be at least 2010 before they hit the level that they are now again, I'd plumb for a tracker myself.

Dan_Collins_2

Why would they go that low. Rates that low gotus in this mess. I think 1 more drop unless the BOE relise that it makes no odd before then. Then they have to go up, inflation is going to hit us hard!

glen8

NOBODY knows

I've always played it safe and gone with the best fixed rate deal I could find

Dan_Collins_2

glen8 wrote: »

NOBODY knows

I've always played it safe and gone with the best fixed rate deal I could find

I think you have a good point. People try and beat the bank and end up not sleeping at night! You have to do what is right for you!

confused31_2

To be honest your not gonna beat the banks now, no matter what the bank of england rates are i dont think in the next few years that banks are going to be giving away great deals.

The hsbc will match your fixed rate for 2 years but they charge a big fee, the only people in the short term who will gain will be the ones who are already on a tracker mortgage, but them deals will come to an end and then they will have pay a lot more.

its not looking to clever:eek:

confused31

Bismarck

~I'd go fixed and get some sleep at night too.

Rates may go down but it makes b*****r-all difference in the way they want to brag about most and with inflation sliding up, whether they try and hide it or not, I suspect interest rates will be over 6% at this time next year just to try and keep the lid on....

and if the Tories get in, who knows!

texas_devil

always have a tracker, and know where you are at all times.
get a fixed rate at your peril, keep your mortgage simple or you could and up in a fix just when you dont need it.
ignore the sales gimmicks

ajaxgeezer

texas_devil wrote: »

always have a tracker, and know where you are at all times.
get a fixed rate at your peril, keep your mortgage simple or you could and up in a fix just when you dont need it.
ignore the sales gimmicks

.......what??? And how on earth do you know where you are with a tracker in comparison to a fix? A tracker is a gamble, a fix is sticking with the cards you know.

nathanhill69

texas_devil wrote: »

always have a tracker, and know where you are at all times.
get a fixed rate at your peril, keep your mortgage simple or you could and up in a fix just when you dont need it.
ignore the sales gimmicks

What?????????????????? Surely they've got this the wrong way around.

dunstonh

Only one way the rates are going long term and that it up. If there wasnt the credit crunch interest rates would be about 2% higher than they are now. Once the credit crunch has resolved somewhat expect rates to start to ease upwards and possibly be there for some time