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Interest rates

(7 Posts)
Cat98 Sat 22-Feb-14 07:16:02

I know no one can know for sure, but does anyone know when interest rates are likely to rise? We are on a sv mortgage but it's a great rate and I want to hold off fixing as long as poss but I know it will be advisable at some point soon, what does everyone think?

Bowlersarm Sat 22-Feb-14 07:19:54

I think, from what Mark Carney has been hinting at, another year, and then when they do increase it'll be very slowly.

But it's all guesswork for anyone, really.

Cat98 Sat 22-Feb-14 07:32:48

Thanks. I hope so!

Bowlersarm Sat 22-Feb-14 09:21:56

There's a current thread running about IO mortgages. Have you seen it? A few views there about whether people think interest rates will rise, and when.

Tiredemma Sat 22-Feb-14 09:26:18

Saw a report on the news the other day- apparently they anticipate a 0.25% rise in Autumn 2015. Quite hesitant as a 'shock' imminent rise could damage the economy.

antshouse Sat 22-Feb-14 13:37:52

Radio 4s money box live have just mentioned interest rates and are predicting next spring. I'll have to use listen again as I can't remember why they thought that though.

TalkinPeace Sat 22-Feb-14 13:43:36

Its a bit of a tangential approach,
but the Government lends money to smaller public sector bodies and is required by statute to make a small profit on the deals.

The loans cannot be paid early, so what the rate is, it will stay at for the full term.
www.dmo.gov.uk/reportView.aspx?rptCode=D9A&rptName=19d3e1a7-11e3-46c4-a1c6-8a309aeb481a||PWLB&reportpage=Lending
so within 5 years, they expect to still make money only charging 2% interest
within 10 years they expect to make money charging 3% interest

I liked the idea in the Economist that the rate would start to move but by teeny amounts like 0.1% every quarter
so the mindset of movement would come in, without big jumps

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