So, interest rates - staying low for the foreseeable future?

[poachedeggs]

We're on a lovely cheap SVR but for the security of a fixed rate we'll need to pay more. Looking at today's news about zero growth I'm thinking they're not likely to go up anytime soon. So maybe I'll hang on to my nice cheap rate. Thoughts? Am I mad?

It certainly doesn't look like interest rates are going to go up significantly any time soon. That would rely on a surge in the economy and, as you say, the growth forecasts have been downgraded. However, your lender could theoretically decide to increase their SVR independently. It happened recently even though the base rate stayed the same. The decision, therefore, will rest on how important it is for you for your payments to be fixed, whether you can afford the fixed rate payments and whether you could cope financially if you had to pay another £50, £100, £200/month.

Thank you for your views. Money is tight which sways me towards a fixed rate for security but it's an extra £16 a month which I could really use. I'm leaning towards the 'do nothing' option but perhaps review things in a couple of months.

Mortgages rates are rising though. If you have a tracker it is fine but otherwise many svr have risen and will continue to do so as the banks recapitalize as the govt have instructed. The are v few new good tracker deals but if you already have one you are lucky

In 2 years I'll have paid off my car finance so I'll be in a much better position. A fix is actually going to cost me up to £30 extra a month because I'll need to add fees to the loan, but it means security until then. It's just so much out of a tight budget.

Do you have much equity in your home? It may be worth shopping around for a fixed rate elsewhere, as (unless you have only a small amount of equity) SVR isn't actually all that low with most lenders!