Please or to access all these features

Add post

Watch this thread

Save thread

Start a new thread

Flip thread

Hide thread

My feed

Active Unanswered threads

Getting started FAQ's

Unanswered threads Acronyms Talk guidelines

Hide shortcut buttons

Talk

Money matters

Find financial and money-saving discussions including debt and pension chat on our Money forum. If you're looking for ways to make your money to go further, sign up to our Moneysaver emails here.

Flip

Original poster

SVR fix or wait?

6 replies

hellsbellz · 04/08/2010 17:34

Hi there,

We've been offered by our bank a 4.24% SVR fix for a year with no fees. It would start Oct 10 - Oct 11. Our loan to value around 20% so not great to shop elsewhere really

Unlikely interest rates will fall below current 0.5% but do you think interest rates will increase anytime soon?

Any thoughts? what would you do or done??

thanks, did post in property but nada so hopefully this thread better...

OP posts:

Chil1234 · 04/08/2010 19:53

Everything I'm hearing says that the interest rates are destined for a long slog at the current level. Easily over a year. If the 4.35% is higher than their current SVR then it wouldn't be a good deal if that was true. If it's lower, go for it obviously. If you're looking 3, 4 or 5 years into the future 4.25% would be very attractive.

DancingHippoOnAcid · 05/08/2010 14:01

Bank of England have just announced base rates staying at same level for the next month and I would agree that they look set to stay at this level for some time to come.

narmada · 23/08/2010 13:03

Bank of England do not set mortgage interest rates. They have a bearing - but mortgage rates depend on lots of other factors - e.g., cost of banks lending to each other, confidence in housing market etc. chil1234 and dancinghippo why so confident that rates will remain at current level? I am really not convinced that's the case.

poppyknot · 23/08/2010 13:36

Just when I thought it was safe to sign........ (a good tracker offer from First Direct) I catch an item on the Wright Stuff paper review that some bloke has prediceted that rates will rise to 8% by 2012. Being a paper item there were no detail. And last few weeks there have been myriad articles about low rates predicted into the future.

I was feeling quite brave going for the tracker (we have always fixed up till now)and now am back to square one on the decision.... I know that no one can tell but that doesn't help.

Lizcat · 23/08/2010 14:01

Is this tracker linked to Bank of England base rate (fixed every month and the one all the pundits say is likely to stay low) or LIBBOR (the rates at which banks lend each other money and is extremely variable).
Yes a vast majority of pundits think the bank of England rate will stay low, but they are just analysts and can not predict the future. At the end of the day we all have to just investigate the market as much as possible and then take our own individual best guess as to what is going to happen.

poppyknot · 23/08/2010 14:13

Thanks - it is linked to the BoE rate.

I realise that we need to investigate for ourselves but even trying to work out the worth of the various pundits is a job in itself (if we could have a special power that allowed us to know what they actaully did with their money that would be a clue - don't do as I say, do as I do). The pundits will ofen be unqualified but write a convincing piece and we 'civilians' are none the wiser.

Is there a pundits' pundit maybe? Wish I was more economy savvy (although I do like the money pages in the newspaper...........)

Hey ho!

Flip