To ask when interest rates will likely go down?

[AnxietyLevelMax]

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.

But terrible for mortgage customers.

If anyone knows of anyone who is on a variable rate, what might be the reason they didn’t fix? I assumed that any broker under the sun would recommend a fix over a variable these days. No downside that I could see over the last few years. And frankly if I were in a fix coming to an end (from last year) I’d likely have paid a penalty to fix for longer.

ao let’s assume most people are fixed between 0.9% and 4% in which case mortgaged people who don’t have other debt on a variable rate can punch the air when their savings give them some bloody interest AT LAST.

not everyone is up to their neck in debt.

Well strictly speaking interest rates are supposed to be higher than inflation 😬

I know. It's ridiculously negative at present and surely destabilising.

Terrible if you took mortgage debt in the last five to ten years maybe, newer mortgage customers will likely be borrowing less as prices fall if this continues.

@Catatemyhomework can I ask who you’ve got your 10 year fixed rare mortgage with?

Raising interest rates won't tame the current inflation. It's not driven by discretionary consumer spending.

www.bloomberg.com/news/articles/2022-09-05/bank-of-england-s-mann-calls-for-forceful-action-on-inflation

Looks like they have got the taste for it now.

Raising rates will certainly contain house price inflation, that is a good start on reducing peoples outgoings (only works if you dont already owe mortgage debt though unfortunately)

So it does absolutely sweat FA for the current cost of living crisis. Which isn't driven by or driving house price inflation.

@HeyThereDelilah1, It was with Lloyds. I think they still have them but I think the rate is higher now. So glad I paid the early exit fees now.

To anyone who has recently remortgaged - can I ask what interest rate you’re on? I’m due to remortgage soon and am getting worried!

Put your numbers into this calculator:
www.thechelsea.co.uk/mortgages/fixed

Bad news for savers if they drop, been too low for ages, folk with mortgages need to accept they vary

@nonono1, We were on a 5 year fix due to finish in 2024. I did actually see this coming miles down the track and I really should have acted sooner, but we were on 1.9 and now fixed for 10 years at 2.3.

It will do very little to tame supply side inflation in the short term but the BOE need to raise rates to try to protect the falling pound and to attempt to reassure markets which clearly lack confidence in the UK government and economy.

Thanks - so it looks like rates are between 4-4.5% now! 😮

when The economy shows signs of slowing down at too great a pace to ignore. Back end of 23, early 24 is my guess.

@nonono1 when is your current fix ending? You can lick another deal in 3 months before it ends, or 6 months with some providers.

Buckle up, guys. Liz Truss' energy company bail out with taxpayers' money coupled with her tax cutting agenda means interest rates will go up higher and faster than they otherwise would. People with mortgages will basically pay more to subsidise people's energy bills.

There are rumours of a 0.75% rate rise at next week's MPC meeting. Base rate will probably be above 3% by Christmas. This will mean mortgage rates of around 5%?

moneytothemasses.com/owning-a-home/interest-rate-forecasts/latest-interest-rate-predictions-when-will-rates-rise

twitter.com/RichardJMurphy/status/1567533491536990208?t=Ivz8qTOzQgBH1KCmLZ51oQ&s=19

twitter.com/ChrisGiles_/status/1567391860745801728?t=ZMAe8bKnF5nUO5TSfOQ0DA&s=19

I don't know when they will go down though, OP

😬

So the BOE decided to postpone their meeting this week until next Thursday, 22nd. The wrong decision imo.
What do people think they will decided to do next week?
I think the general consensus is 0.5% but if the Fed make a significantly larger rise, they might have to raise by 0.75%.

What do people think they will decided to do next week?
They'll raise rates and follow the Fed.
But only because every other bank is making the same mistake, and if they don't the pound will collapse even further against the dollar and euro. Raising interest rates won't counter inflation driven by the conflict in Ukraine pushing up energy and food prices. And it won't help the UK's post-Covid and unique post-Brexit economic problems.

I think up by 0.5%

7% is the average BOE interest rare since the 1970's so you could assume after more than 10years well below average it is likely that rates could remain above average for a while.
Hopefully people who have taken mortgages in more recent times will have factored in the historically low rates into their affordability calculations over the mortgage term.
It's a bit misguided to take on 25-30 year financial commitment on the assumption rares will remain consistently low and constant.
A brief look back in history will show rates fluctuate widely with changes in the economy.

I agree that 0.5% seems most likely although I doubt it will be enough to support the pound particularly if the Fed increases by 0.75%.

@saleorbouy what you say may be reasonable in theory and be reasonable to an older people who bought when rates were considerably higher. However, to younger people who has bought in the last few years, they wouldn't be able to buy at all at historically average rates as house prices have been so inflated by low rates. Secondly, they have only know very low rates and have been lulled into a false sense of security. In reality, therefore, isn't fair or realistic to expect them to have taken possible higher rates in 10 or 15 years into account.