davegtt

OK its coming, it started (ever so slightly) in Dec, over the next year, 2 years, 3 years what are peoples predictions? how high will they be by the end of 2004? will they continue to rise?

Im trying to prepare myself in advance to be 100% sure I'll be OK paying my morgage and what to expect etc... Im remorgaging at the mo and I like the idea of a one acct but just been told this is a variable thing so if I go with a 1 acct I wanna know what to expect being on a variable...

what are people expecting then? 7% max???? as high as 10% hope not

ProperCharlie

if it gets to 10% we may as well start building our mud huts.

imlach

It is unpredictable.....anything could happen. No one can tell you what may or may not happen. They can give an educated guess only.

If you are at all nervous, you had better stick to a fixed.

imlach

Remeber, it was only as recent as 1990 they were 12%+
..and don't let anyone tell you it cannot happen again!

[Edited by imlach - 1/15/2004 11:27:24 AM]

ProperCharlie

and remember the carnage that followed that...

NACRO

If it gets to 10% then think of the interest you'll get on your savings- swings and roundabouts.

imlach

Problem is, no-one in this country has savings no more!

We are in a debt ridden disaster!

[Edited by imlach - 1/15/2004 11:30:34 AM]

TonyG

Just as an aside, there's an article in todays Times which says that the interest rate on loans in Japan is currently -0.3% Yes, that's minus zero point three. Effectively, people are being paid to take out loans.

Dracoro

However, most people have a mortgage of, say £100,000 but savings may be £10,000. To get the 'same' level of benefit from a rate rise, you need to have as much savings as mortgage (e.g. £100,000 in savings! in the example above).

TelBoy

Tony, it's more like -1%. Madness.

ProperCharlie

besides that fact that no-one has any savings, even if you did you are taxed on the interest from savings but no tax relief on your mortgage. a lose/lose situation, surely?

Muffleman

Unfortunately, there is simply more scope for increase than decrease !

Lets hope it stays low !!!

Cheers


Matt

ChrisB

I do Imlach

imlach

Yes, but ChrisB, you are rare these days!

Most have remortgaged the family silver to buy an Sti8 etc

davegtt

So nobody has any forcasts then? Im expecting it to rise but unsure what it will be. a one acct is offering 4.95% now if it rose to 7% I know I can afford the payments still but then 10% it gets quite scary.... probably be able to struggle by but it really is worrying knowing what the payments willbe, there are obviously ways round it etc but just wondering what to expect

marky1

You can look at December short sterling which is essentially pricing in a rate of 4.6%. This is what the "market" expects rates to be at a the end of the year. Not precise but the best estimate you will get.

Mark

All Talk

Most of what I've read shows between 4 & 5. I'm with Intelligent Finance offset which is 4.6, excellent product but thinking about going fixed.

Ted Maul

you're looking at a 5yr sterling future rate at 5.3%

TelBoy

Ted, is that a firm price? Swaps showing 4.82-4.87...

Ted Maul

I'm seeing 4.834/4.878 for the swap but 5.2 on the dec08 future..so I estimated slightly

Old_Fart

If you are worried rates are going to 10% then a fixed rate won't save you....one day the fixed rate ends and your repayments double overnight...
A current account mortgage (used optimally) should help you clear capital more quickly..so you are less exposed to the future rate rises.
Rgds
Cman (all cash, no debt )

imlach

Unless you get a 25yr fixed at 6.5%......

Scooby96

Shoooooot - what are the redemption penalties on that???

TelBoy

Try explaining under 5 year mortgages to an American. He'd laugh at you. We're one of the few countries where life-of-the-loan mortgages aren't common...

GreenMachine

Any chance of a UK citizen getting one of those negative rate Jap loans?

Scooby96

I think the neg rates were only available for short term lending like 2-3 months.

TelBoy

Nope, at least a year. As i said, madness!

Scooby96

Thought I read somewhere that the neg rate (0.03-0.06) were no more but obviously I could be wrong. I wonder how many Japs were sleeping on billions of yen rather than paying the bank to 'look after it' for them!

TelBoy

Indeed. "Under the mattress" is a sound financial strategy in Japan right now...

misty

Bring back the good old days!!! 15% mortgage rates, 12% on your savings. Brilliant! can't wait.
P.S. Little mortgage, lots of savings!!
dave