When do you think rates will come down?

[biggless]

No one has a crystal ball, but?

They have just gone back to the long term average…

Watching the Martin Lewis programme that's on at the moment, they are discussing this.

They haven’t finished going up yet.

Pay is rising and not accompanied by increased productivity, which does not bode well for inflation unless there is compensation from other costs. Interest rates will have to track inflation, so until that turns, rates will keep rising.

Interest rates have been abnormally low for the last 15 years and have just gone back to normal.

What makes you think they'll become abnormal again?

Don't hold your breath.

I reckon it will be 2-3 years - it's going to be tough

I watched the Martin Lewis show last night. The graph he showed was forecasting that interest rates have a little further to climb (not much, we are almost at the peak according to him) and will stay high into 2024 but start slowly falling in about a years time. He stressed they won't fall to the extremely low levels that borrowers have enjoyed in recent years. But rather move down to about 4%.

Probably around 2028 as rates tend to go in 5 year cycles.

I was advised to get a 2 year fixed date. My house is a new build so rate won’t kick in till next year. But was told they predict falling to be in 4% range. I took the risk

There was some economics professor type person on Radio 4 yesterday. His suggestion was that the peak of rates is spring 2024, likely 1% - 1.5% higher than currently. This would stick with us for a couple of years, and rates will never go back down to the low levels we have had for the foreseable.

This was a segment on how hard hit folk are with the mortgage cost rises - he suggested that we are only at the start of the issue, with only a small proportion currently having to re-mortgage in 2023, and that 2024 (Spring, co-inciding with the higher rates) through to 2025 was going to see a lot more people coming off fixed deals, including people who since mini-budget from hell have had to re-mortgage at a higher level but were only on a 2-year fix, so will face another rise in late 2024 or early 2025.

Rather depressing, but also a reminder that for 10+ years we have enjoyed historically low rates. Perhaps we all got rather used to making financial decisions based on low interest rates for loans / mortgages / PCP etc.

Martin Lewis lives in a huge mansion in St johns wood- doesn't live normal people's life and the content is prepared by someone else- I am amazed how far he got

anyway coming back to the subject

I am dreading November - when my offer expires, I regret not taking 5year deal
I think it will last another 2/3years unfortunately...

I do think he’s probably a bit of an arrogant twat in real life. But putting that to one side, he does give good financial advice and it’s free and without too much waffle so I’m glad he’s around.

Martin Lewis lives in a huge mansion in St johns wood- doesn't live normal people's life and the content is prepared by someone else- I am amazed how far he got

This is a bizarre criticism to make.

His father was a special school headteacher and his mother died when he was a child. He lived an ordinary middle class childhood. He started out as a BBC producer before becoming a journalist, specialising, and founding a website that became very popular because it's good.

He owns that mansion because he's financially savvy, worked hard, helped millions of people and has made some money along the way - I don't begrudge him that at all. It would be impossible for one person to write and constantly update a website the size of MSE.

I don't begrudge him his success at all.

Bit harsh, he gives good free advice and good for him with his massive house.

I think they will start coming down after they have risen some more.
2% mortgages are a thing of the past.

I think they'll go higher yet and probably settle at 4-5% eventually. What we've seen for the last decade or so has been exceptionally low and not the norm at all.

The whole thing will last longer if borrowers are supported. Interest rates are used to control inflation but if no one feels the full effect of the rises because of government support it won't work/will take longer.

I think Martin Lewis started a brilliant website that's helped so many people over the years but in recent times he seems to have become a ranting champagne socialist who thinks the taxpayer should bail out everyone for every single decision they've ever made but that's now not working out for them.

Gone right off him and his ranting delivery style and now find him really, really annoying!

Yes I tend to agree with this.

I still look at his consumer advice and use to find the best rates etc, but I don't always agree with his lobbying of government. Some of it is just plain dangerous imo

I’ve met him in real life and he was indeed arrogant and not very friendly. And I say that as someone in his Industry yet perhaps not well known enough for him to be nice to. Anyway I do like reading his financial advice.

Msny experts reckon Interest rates will climb a little bit further and begin to come down next year and then hover around the 4% mark. But who really knows! I am obsessed with keeping an eye on them too.

"I think Martin Lewis started a brilliant website that's helped so many people over the years but in recent times he seems to have become a ranting champagne socialist who thinks the taxpayer should bail out everyone for every single decision they've ever made but that's now not working out for them."

Agree. I think hes too obsessed with individual stories and not the bigger picture. The tax payer paying for peoples mortgages, energy bills etc, is just robbing Peter to pay Paul, and he can't seem to see that

Any news on what savings rates will do?

Another one here obsessed with watching them.

I'd love to think they were coming down to around 4-5% in a couple of years time.

They'll do the same, albeit with a gap between what it costs to borrow and what you earn on savings. They don't operate independently of each other.

2029was mentioned on R4 this morning

I don't think we would take Martin Lewis too seriously would we if he was struggling to make ends meet? Bizarre comments about how he lives in a mansion blah blah! Honestly!