If interest rates go up by 4 percent how would that affect you?

[redhat]

Ive just been reading on the BBC website that 2016 is predicted to be one of the toughest economically since the financial crisis.

I know that when interest rates go up - potentially later this year, this is likely to be done very gradually but historically interest rates of 4.5 percent are not at all unusual.

We are throwing everything at our mortgage at the moment to try to clear it as soon as we can. We're on a decent rate but the mortgage debt is high.

If interest rates went up by 2 percent or even 4 percent how would that affect you?

We're on a fixed rate mortgage so it would affect us immediately however it would when we renegotiate. I have about 20k savings so an interest rate rise might help me in that regard.

Id be very happy.

I own out right and I suppose am a saver. Not a big saver but still.

It would benefit me after such low saving rates for so many years.

Might trigger a drop in property prices?

That would be fabulous! Getting almost no interest on my savings is depressing. Dp pays the mortgage but we fixed it at 2.5% last year and it's very low and due to be paid off within five years, so no worries there. And we have no debts.

Bring on the high interest I say!

inmysparetime it is really fascinating to spend time on the MSE overpayment cakculator. We have only paid £70/80 over a month at times (sometimes more like £100/150) and have knocked YEARS and THOUSANDS off the mortgage. Seeing it decrease at an accelerated rate is really motivating. Even now, on mat pay we are budgeting an overpayment as it feels so good knowing the mortgage will finish earlier allowing us to help dcs out during higher education etc.

Sorry sparetime that was more to stubborn!