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AIBU?

Share your dilemmas and get honest opinions from other Mumsnetters.

Original poster

To ask when interest rates will likely go down?

675 replies

AnxietyLevelMax · 17/06/2022 23:02

We are close to remortgaging for the first time. Long long time ago i was happy and excited thinking we will be paying less by £200 min per month. Right now our rate would change. We still have 5 more months before we can remortgage so we can end up paying even more than now.

how long do u think it will all last?

i dont know how we are going to do that, we cant save anything now because we are paying debts, childcare is expensive as hell, everything is expensive, we barely make it month to month paying debts off but it will still take us 1.5-2 yrs min. We have no financial cushion. I am worried as hell, cant sleep worrying if something happens we dont have any extra money.

OP posts:
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9
RainCloud · 27/07/2022 22:18

A mumsnet sweepstakes 😀.

Shall we all meet up next Thursday for a virtual beverage?

rainingsnoring · 27/07/2022 22:34

AppleBottomRats · 27/07/2022 22:12

I think 0.5. BoE has never been as aggressive as the Fed. But slightly more on it than the ECB, who have just raised rates… to zero.

It would be laughable if it weren't so serious. How negative can they all go (in real terms)? Here were are 7 or 8% negative at present. It's ridiculous.

ApplesandBunions · 27/07/2022 23:15

I'm thinking 0.25% too.

Iamthewombat · 28/07/2022 09:35

Mumsnet hawks v doves. I think 0.5% too.

Grumpyoldpersonwithcats · 28/07/2022 09:51

My bet is a 0.5% increase but with a few of the outliers on the committee recommending 0.75%.

lot123 · 28/07/2022 11:48

Grumpyoldpersonwithcats · 28/07/2022 09:51

My bet is a 0.5% increase but with a few of the outliers on the committee recommending 0.75%.

I'll take the same bet. Unless political pressure is brought to bear behind the scenes to stagger the increase.

RainCloud · 28/07/2022 12:39

maryso · 27/07/2022 22:09

@rainingsnoring agree, and does anyone know why we pay the Governor (this and the last one) so much when all they do is follow the US?

Good question!

RainCloud · 28/07/2022 17:16

Anyone think they might go down on 4th?

lot123 · 28/07/2022 17:18

I think there's no chance of that, with the current level of inflation.

ApplesandBunions · 28/07/2022 17:33

Nooo, can't see how they'd manage that.

RainCloud · 31/07/2022 15:59

2 million homeowners to be hit by mortgage rate shock next year.

archive.ph/6kWAH

GreenLunchBox · 01/08/2022 01:32

I'm throwing my hat into the ring with 0.5%

RainCloud · 01/08/2022 19:08

So we've got 0.25, O.5 and some possibly 0.75%. No one thinks they'll go down (so far). Anyone think 1% or more?

Quite exciting 😆

SofiaSoFar · 01/08/2022 19:54

RainCloud · 28/07/2022 17:16

Anyone think they might go down on 4th?

Down?!

No, not a chance.

I'd expect up by possibly another 0.5%

Sporty2022 · 01/08/2022 21:43

Interest rates won’t go down now, they’ve already been rock bottom.
I think in the next 5 years they’ll be up to maybe 3% .

Sporty2022 · 01/08/2022 21:51

Intestate rates have typically been around 5-7 per cent throughout the 90s and 2000s.

In 1989 they were I think 13 per cent for a while.
The rest of the 80s interest rates were around 9%, so quite high really.
That said , house prices were much lower so people didn’t borrow as much.

Its also worth remembering that generation rent would be significantly affected by higher interest rates because the landlords will be paying higher rates too.

GreenLunchBox · 01/08/2022 23:15

Sporty2022 · 01/08/2022 21:51

Intestate rates have typically been around 5-7 per cent throughout the 90s and 2000s.

In 1989 they were I think 13 per cent for a while.
The rest of the 80s interest rates were around 9%, so quite high really.
That said , house prices were much lower so people didn’t borrow as much.

Its also worth remembering that generation rent would be significantly affected by higher interest rates because the landlords will be paying higher rates too.

It's all so depressing

But if interest rates don't go up house prices will continue to be ridiculous

I'm hoping for some interest rate rises leading to a flattening of house prices, then people's wages go up so that they are better multiples of house prices

Nothappyatwork · 02/08/2022 07:35

RainCloud · 01/08/2022 19:08

So we've got 0.25, O.5 and some possibly 0.75%. No one thinks they'll go down (so far). Anyone think 1% or more?

Quite exciting 😆

Exciting? What a cnut

RainCloud · 02/08/2022 09:36

I'm hoping for some interest rate rises leading to a flattening of house prices, then people's wages go up so that they are better multiples of house prices

I'm hoping for the same.

InterestQ · 02/08/2022 10:48

I would like the ability to get 5% on savings. For £10k in emergency savings, that would be £40ish pcm and half a tank of petrol or a week’s food shop at Aldi. It would be really good to just get SOME sort of meaningful return without crashing the economy.

Iamthewombat · 03/08/2022 09:20

Nothappyatwork · 02/08/2022 07:35

Exciting? What a cnut

Show quote history

Isn’t she lovely?

Nothappyatwork · 03/08/2022 14:57

InterestQ · 02/08/2022 10:48

I would like the ability to get 5% on savings. For £10k in emergency savings, that would be £40ish pcm and half a tank of petrol or a week’s food shop at Aldi. It would be really good to just get SOME sort of meaningful return without crashing the economy.

But it wouldnt, in order for you to get £40 inflation has to rise so your food bill will be £80 and petrol the same. You will not enjoy a net gain, but someone else will lose.

InterestQ · 03/08/2022 16:15

I get very little on my savings at the moment and my food shop is still going up so I still quite fancy my £40 over nothing.

If we can just get back to days of inflation being at 3% and interest between 5-6% (the year 2000 is a good example of this) then I would be better off.

Nothappyatwork · 03/08/2022 17:26

InterestQ · 03/08/2022 16:15

I get very little on my savings at the moment and my food shop is still going up so I still quite fancy my £40 over nothing.

If we can just get back to days of inflation being at 3% and interest between 5-6% (the year 2000 is a good example of this) then I would be better off.

Yes but we won’t, the model has changed we are now a low wages high Debt society so the only possible outcome for your sweet little scenario is somebody else gets spectacularly screwed over including you.

rainingsnoring · 03/08/2022 19:00

Nothappyatwork · 03/08/2022 17:26

Yes but we won’t, the model has changed we are now a low wages high Debt society so the only possible outcome for your sweet little scenario is somebody else gets spectacularly screwed over including you.

Show quote history

It's not a 'sweet little scenario' . How patronising. It's exactly what used to happen and frankly it's one of the key tenants of Capitalism (money makes money) so that's obviously failed.
It's not @InterestQ 's responsibility to worry about you or other people who may have over borrowed.
The BOE obviously don't want to raise interest rates very firmly because they are worried about the massive debt burden and mass defaults. The debt burden is clearly unsustainable though and will come crashing down at some point despite their best efforts. The bank may also be forced to raise interest rates much more than they would like to in order to protect the pound. It's naive to suppose that this not so clever scheme can continue forever.