outlook for interest rates

[NuclearStandoff]

I would like the wise owls of Mumsnet, especially those who work in finance industry, what their opinions are on the direction of UK interest rates in the next couple of years.

Are we about to enter a triple dip recession, which would presumably keep rates at their current historic lows, or are there green shoots of recovery on the horizon which might start to push up rates?

Thanks!

Personally I think we will avoid a triple dip recession but I don't see any chance of significant economic recovery in the near future. I don't forsee any change in interest rates in the next 12-18 months and any rises after that are likely to be gradual IMO.

Not an expert, just an interested amateur (although I did take out a lifetime tracker mortgage in 2008 in expectation of falls in interest rates).

Don't ask me.... I took out a 5-year fixed interest mortgage in 2008 right before the rates dropped to nothing!!! Having said that, like the PP I think we're on a long slow haul to economic recovery and I don't see interest rates changing radically in the near future.

It all depends on your personal circumstances. If rates going up a percent or two would completely scupper your budgets, go fixed rate. If you've got money to spare, go variable.

Thanks for your views. Also on a lifetime tracker, but wondering whether to take advantage of 5-year fix now as they seem quite competitive ...

Which do you value more? A fixed payment (long-term peace of mind) or a variable rate (potentially cheaper short-term)?

Not so worried about peace of mind, want to be on the cheapest deal we can be.

Am normally quite good at finessing the re-mortgaging (used to work in finance) and we were on a rate of 0.5% for quite a while which was great - but finding it harder to see ahead for 5 years...

I'm guessing that the fixed rate would be at a higher rate than you're currently on? So it would be worthwhile working out what interest rates need to be on average over the next 5 years before you would see any benefit from changing to the fixed rate, including remortgaging costs.

Just to add, personally I'm not even considering changing my mortgage from a lifetime tracker at the moment. Generally you pay a bit more for fixed rates because for the peace of mind of knowing your payments far ahead. I tend to see low fixed rates as an indication that the banks themselves see interest rates as remaining relatively low. Why would the banks be offering cheap mortgage deals if they thought interest rates were going to go up significantly?