Mortgage Interest Rates

[BlueRob01]

it all depends how good your variable one is now tbh

but the outlook is rate rises within the next six months

i fixed ours last month

Do you still think they'll go up given the news regarding wages being lower than inflation?

I'm sure I read that interest rates have never(or don't usually) go up in the months prior to a general election. Also the if they go up in the net 6 months that could/would put more stress on families on the run up to Xmas.

Now I appreciate the BoE don't work for the government but I imagine they will have to take some of their concerns on board, if they have any?

Valid points mate and ones I have considered, making the decision harder still, I think SF is right though, next 6 months maximum, not being clued up on these matters, no idea how much notice they give once they make the decision.

Fix it now mate.. Seriously.
Fixed rate deals don't wait till the BoE base rate change of course, or even till the change is a definite.
Actuaries work out the likelihood of a rate change against the interest rate deals they offer at any point in time. The likelihood is rates can and will only rise of course. The longer you leave it the likelihood is the more you will ultimately pay.

 

[mayo31]

The advice I have is that rates will not increase until at least after the general election, so we have 6 months

I need to do some calculating, I paying 2.5% at present and have found some at 1.89% fixed but these have product fees.

I need to put time aside and work it out

 

[Thenumber1blue]

Won't be changing the rate until at least half way through next year,i've been on 2% plus the best rate for a long time.

 

[Millwallawayveteran1988]

If it is any help, I went to a presentation last week by the Chief Economist of a very large Fund Management group.

Current thinking is that the first interest rate rise will be around June next year and will be a 0.25% increase. Interest rates will then continue to rise over time and peak at around 2.5% in a few years time.

This will however be dependent upon continued economic recovery. Any signs of a slow down and this will be put back further.

Obviously might just be guesswork but thought it might be of interest.

 

[mayo31]

If it is any help, I went to a presentation last week by the Chief Economist of a very large Fund Management group.

Current thinking is that the first interest rate rise will be around June next year and will be a 0.25% increase. Interest rates will then continue to rise over time and peak at around 2.5% in a few years time.

This will however be dependent upon continued economic recovery. Any signs of a slow down and this will be put back further.

Obviously might just be guesswork but thought it might be of interest.

Using those calculations I will be paying 4.5%, I used to be paying 5.49% with my last fixed rate

 

[Millwallawayveteran1988]

If it is any help, I went to a presentation last week by the Chief Economist of a very large Fund Management group.

Current thinking is that the first interest rate rise will be around June next year and will be a 0.25% increase. Interest rates will then continue to rise over time and peak at around 2.5% in a few years time.

This will however be dependent upon continued economic recovery. Any signs of a slow down and this will be put back further.

Obviously might just be guesswork but thought it might be of interest.

Using those calculations I will be paying 4.5%, I used to be paying 5.49% with my last fixed rate

And when you add arrangement fees on it adds to the rate effectively.

 

[kp789]

Will this affect savings interest rates?

 

[117 M34]

If it is any help, I went to a presentation last week by the Chief Economist of a very large Fund Management group.

Current thinking is that the first interest rate rise will be around June next year and will be a 0.25% increase. Interest rates will then continue to rise over time and peak at around 2.5% in a few years time.

This will however be dependent upon continued economic recovery. Any signs of a slow down and this will be put back further.

Obviously might just be guesswork but thought it might be of interest.

That is pretty much what the guy at the Halifax told me.
I've decided to go for the higher interest rate (3.89%) for the 4 year fix. I think it will work out best in the long run.

 

[Millwallawayveteran1988]

Will this affect savings interest rates?

They should rise a bit but not in direct line with the base rate rises. Problem nowadays is that banks and building societies don't need to offer great savings rates as they can borrow money cheaply off the government. Savings dates will stay low for years.

 

[Millwallawayveteran1988]

If it is any help, I went to a presentation last week by the Chief Economist of a very large Fund Management group.

Current thinking is that the first interest rate rise will be around June next year and will be a 0.25% increase. Interest rates will then continue to rise over time and peak at around 2.5% in a few years time.

This will however be dependent upon continued economic recovery. Any signs of a slow down and this will be put back further.

Obviously might just be guesswork but thought it might be of interest.

That is pretty much what the guy at the Halifax told me.
I've decided to go for the higher interest rate (3.89%) for the 4 year fix. I think it will work out best in the long run.

Even if it doesn't, at that rate, you won't lose out by much.