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Interest rates up to 5.75 per cent

(94 Posts)
layman Thu 05-Jul-07 12:37:05

I think there will be another one after this, perhaps more. The days of low interest rates are over for now. Good for savers though.

Upwind Thu 05-Jul-07 14:03:17

Scary for people who have recently bought though?

I know my BIL is really going to struggle as his fixed rate expires in September. A few weeks ago he told us that if rates went up again he would be forced to sell.

Does this mean people can borrow less?

mumblechum Thu 05-Jul-07 14:05:27

God I really really hope we manage to clear the mortgage off before our fixed rate expires in 2009.

beans on toast for the next 2 years....

dressedupnowheretogo Thu 05-Jul-07 14:08:25

oh my god thank gog we have boght on a seven year fixed rate

shit aldi for us and sun holidays forever

littlelapin Thu 05-Jul-07 14:09:59

Message withdrawn at poster's request.

lulumama Thu 05-Jul-07 14:13:09

we are in our 3rd year of a fixed rate mortgage, found by an IFA..3 months before the first fixed rate was due to expire, I called teh IFA, told him what we wanted, and he sorted out in plenty of time, so there was no period where we were paying the higher rate

well worth finding a good IFA, IMO and IME

Tutter Thu 05-Jul-07 14:13:20

<sticks fingers up at those who warned against renting for a year>

mumblechum Thu 05-Jul-07 14:15:05

<<Hijack>>>>

Hey Tutter how did your hogroast go on Sun? We were at Frieth garden party hog roast and only got 5 mins of rain!

Tutter Thu 05-Jul-07 14:15:51

<<pissed it down but think everyone had a good time, thanks. had a marquee. pig delicious>>

Tutter Thu 05-Jul-07 14:16:20

<<it was sat, not sun, btw. hence monsoon>>

mumblechum Thu 05-Jul-07 14:17:23

Glad it went well.

layman Thu 05-Jul-07 16:34:42

It is scary. I'm wanting to move and this just puts me off. I'm going to try renting if we can sell our flat.

I would imagine it would effect lending. They wil tighten their lending practices imo.

Twiglett Thu 05-Jul-07 16:37:28

its going to kick in when the million or so people on 2 year fixes from the 4% interest rate period's mortgage deals end .. in oh about the next quarter (so someone said on news this am)

then I reckon maybe 1 or 2 more rises then a slow fall <fingers crossed>

jajas Thu 05-Jul-07 16:41:34

I heard that too this morning on radio 4, that's us up the creek without a paddle then

bigmouthstrikesagain Thu 05-Jul-07 16:43:39

That'll be me then - our 2 yr 4% fixed rate ends in Feb next year - I am doing sums at the moment and it is not looking good.

Am considering a 6 m mortgage holiday then a change to a new fixed rate mortgage - we desperately need to replenish our savings and at least a high interest rate is good or that!!

noddyholder Thu 05-Jul-07 16:44:34

I think there will be at least one more raise this year and then mortgage lending will tighten.It is not just mortgages though credit cards and loans will all rise too. I think prices will start to come down by xmas

JodieG1 Thu 05-Jul-07 16:49:48

We had 2 years fixed rate and this year is variable, it was a good deal and we went through an IFA. It runs out in October I think (need to check) and I'm going to get in touch with him again to try and get another decent deal.

Hulababy Thu 05-Jul-07 16:51:44

As soon as your fixed rate finsihes see an IFA and see if you can remortgage with someone else. You have to keep moving your mortgage about at the moment to get the best deals.

JodieG1 Thu 05-Jul-07 16:56:31

We get fined if we move before the end of the 3 years, it was a good rate for the first 2 though and it's capped now as well. Only a few months left for us now.

ChippyMinton Thu 05-Jul-07 17:11:38

Our 2 year fix expired last month and we opted for a five year fix. Am pleased we did if the trend is upwards.

Upwind Thu 05-Jul-07 18:15:17

When interest rates go up, do the rates of long term fixes go up too?

bigmouthstrikesagain Thu 05-Jul-07 18:41:08

new long term fixed rate mortgages rates will rise - if you sign up for one today it won't change tomorrow but it is likely to rise for new customers - not well explained but I don't pretend to be an IFA

MrsMar Thu 05-Jul-07 19:18:24

The whole reason I went on a base rate tracker last year... I couldn't take the hit after being on a lovely low fixed rate and then suddenly a high rate, been having gentle rises for a year, will wait for them to drop again before refixing (that's if they do!)

noddyholder Thu 05-Jul-07 22:31:40

itv news covering this now

hecciesmum Fri 06-Jul-07 06:52:13

The 2 year forward is showing 6.3%. That means that the money market is telling you that 2 years from now interest rates will be 6.3%.....it is usually uncannily accurate as a predictor.

Fix yourself at 5.75% for as long as you can....if rates do fall by some bizarre twist of fate, then you can always refinance at a lower rate.

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