Interest rates

[Spindelina]

With your best crystal ball gazing skills, what do you think is a sensible interest rate to plan to have to pay in the next ten or so years?

We are overpaying at the moment, so we could go up to 6% or so without increasing our monthly payments. Any more than that would mean belt tightening or increasing the term. Wondering if we should do a bit of belt tightening now so that we pay off more sooner.

[We aren't model applicants, but seem to be able to get reasonably mainstream rates if not the best bargains.]

I think 6% is probsably about right - though the consensus is that such levels are years away. Over-pay now as much as you can. The more you can pay off in the earlier years, then better (due to the compounding nature of the interest charges)

I think there was something in the press last week about aiming for 3% over the next 5 years. Whatever happens it will be really slowly....

the 3% quoted is base rate...... mortgage lenders have stopped offering base rate even as their SVR - I think realistically 4-7% over the next 5 years is what will actually be charged by the mortgage lenders Which is why they are doing their affordability tests based on 6-7%