Interest rates

(4 Posts)
Spindelina Thu 05-Jun-14 14:53:59

With your best crystal ball gazing skills, what do you think is a sensible interest rate to plan to have to pay in the next ten or so years?

We are overpaying at the moment, so we could go up to 6% or so without increasing our monthly payments. Any more than that would mean belt tightening or increasing the term. Wondering if we should do a bit of belt tightening now so that we pay off more sooner.

[We aren't model applicants, but seem to be able to get reasonably mainstream rates if not the best bargains.]

MaliceInWonderland78 Thu 05-Jun-14 15:39:55

I think 6% is probsably about right - though the consensus is that such levels are years away. Over-pay now as much as you can. The more you can pay off in the earlier years, then better (due to the compounding nature of the interest charges)

TeenageMutantNinjaTurtle Thu 05-Jun-14 15:42:31

I think there was something in the press last week about aiming for 3% over the next 5 years. Whatever happens it will be really slowly....

craftycrafter Thu 05-Jun-14 15:45:39

the 3% quoted is base rate...... mortgage lenders have stopped offering base rate even as their SVR - I think realistically 4-7% over the next 5 years is what will actually be charged by the mortgage lenders Which is why they are doing their affordability tests based on 6-7%

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