expected rise in interest rates...?
#1
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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
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%
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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.
If you are at all nervous, you had better stick to a fixed.
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If it gets to 10% then think of the interest you'll get on your savings- swings and roundabouts.
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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.
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If it gets to 10% then think of the interest you'll get on your savings- swings and roundabouts.
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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?
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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
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#16
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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
Mark
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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... ![EEK!](https://www.scoobynet.com/images/smilies/eek.gif)
A current account mortgage (used optimally) should help you clear capital more quickly..so you are less exposed to the future rate rises.
Rgds
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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
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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...
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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!
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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
P.S. Little mortgage, lots of savings!!
dave
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