obviously no one can say for certain, but how long does everyone think it will be before they start going up again,
personally i would say a year ?

obviously no one can say for certain, but how long does everyone think it will be before they start going up again,
personally i would say a year ?

i concur plank......estimate a year at least :)

Well CPI is up this month, but this for some reason has been eclipsed by the 0% RPI in the press. Of course we have already seen that CPI as an iflation target is ignored if it doesnt fit the low IR agenda, so i wont hold my breathe.

The fact does remain though, that we have yet to see any deflation and the printing presses are running, so id expect inflation to start its journey to the moon pretty soon. Whether IR will will rise soon enough is another story though...

There is a similar question posted on the moneysavingexpert forum (see link) which you might find an interesting read.

http://forums.moneysavingexpert.com/showthread.html?t=1498841

Personally, I think that interest rates will stay low for at least the next year... but they will have to start going up at some point. I think they will return to between the 4% and 6% level over the next 5 years. Although we may not see large rises in interest rates until after the next general election.

i am really torn at the moment as am on fixed at 5.99 for the next 3ish years.

seems rubbish at moment but i will then have the option to carry on at 5.99 for 5 years after that when rates may be much higher

need to get the calculator out

High inflation would be good for people with mortgages because the value of their debt in real terms would reduce. But would the mortgage companies raise their interest rates so that the debt keeps up with inflation?

Of course they will. Otherwise they take the hit on the capital depreciation, not the mortgagee.

I'm in the market myself, and only looking at '5 years fixed' products (max fixed period I can find anywhere, and if you know of a longer one, do please share :thumbsup:)

I concur fully with rustyfunk's post, re. inflation and base rate corrections (expected to be large and in rapid succession, as and when they start). The indicators currently used to calculate the rate are politically-biased, for obvious reasons.

What's likely to happen, is a verbatim repeat of what ocurred so far: government/BoE ignores warning signs of galloping inflation & keeps reporting all is swell, until the problem gets so big as to kick their butt clean out of the park, and BoE has no choice but to ramp up the rate at a disproportional rate to try and stall the inflation hike.

Of course they will. Otherwise they take the hit on the capital depreciation, not the mortgagee.

I'm in the market myself, and only looking at '5 years fixed' products (max fixed period I can find anywhere, and if you know of a longer one, do please share :thumbsup:)

I concur fully with rustyfunk's post, re. inflation and base rate corrections (expected to be large and in rapid succession, as and when they start). The indicators currently used to calculate the rate are politically-biased, for obvious reasons.

What's likely to happen, is a verbatim repeat of what ocurred so far: government/BoE ignores warning signs of galloping inflation & keeps reporting all is swell, until the problem gets so big as to kick their butt clean out of the park, and BoE has no choice but to ramp up the rate at a disproportional rate to try and stall the inflation hike.


The Halifax are offering a 10 year fix but the rate is sill. Its about 7%.

It is silly but then, if there's a repeat of what happened in the 80s (which I fully expect), it may yet turn out to be a right bargain in 4 to 5 years' time. Too much of a gamble at the moment.

Why not take a short fixed term of say 2 years and then see where rates go form there. To fix for 10 years at a high rate when rates are so low makes no sense. Better still most SVR's are low at the minute, stick around with your current lender on their SVR and then when rates look like they will rise swap to a fixed rate.

I'm paying 0.99% at the moment, and am inclined to think that it'll be a year or so before there's any significant increase...

Yeah I am happily paying 1.49% at the moment and am torn because I think business wise I could do with a base rate rise but personally I quite like this low apr :)