Tony Posted September 13, 2006 Share Posted September 13, 2006 Interest rates stayed at 4.75% last week despite a Bank of England and analyst warnings that they are going to have to rise to kerb growing inflation. A quarter of a point here and there doesn't look like much, but how will it affect you? Will the mortgage make you feel the pinch or will your savings look healthier than ever? Link to comment Share on other sites More sharing options...
Blade1983 Posted September 13, 2006 Share Posted September 13, 2006 Interest rates stayed at 4.75% last week despite a Bank of England and analyst warnings that they are going to have to rise to kerb growing inflation. A quarter of a point here and there doesn't look like much, but how will it affect you? Will the mortgage make you feel the pinch or will your savings look healthier than ever? I don't know many people with savings - i certainly have non! We have a year left to run on the fixed rate period of our mortgage - if they go up much more in that period then it will probably be a case of setting traps on the front path for the repo men! Link to comment Share on other sites More sharing options...
Agent Orange Posted September 13, 2006 Share Posted September 13, 2006 Erm, the mortgage is irrelevant cos the first 3 years are fixed rate so there will be no change there. I have a small loan which is almost paid off, but I can see that being affected and I'm starting to make an effort to save so an higher interest rate should be useful. Link to comment Share on other sites More sharing options...
RichD Posted September 13, 2006 Share Posted September 13, 2006 I'm on a 5-year fixed rate mortgage which I only took out 3 months ago. I also have some savings, which I intend to leave sitting there for at least the next couple of years, and even perhaps add to. So I'm hoping for numerous further interest rate rises in the short term. I'm also of the view that the sooner they rise, the sooner they will be able to fall again. If they rise too slowly they will fail to curb inflation and possibly need to rise higher in the medium term. Link to comment Share on other sites More sharing options...
DaBouncer Posted September 13, 2006 Share Posted September 13, 2006 I'd prefer no rate rises in all honesty. I have no specific "savings" that would seriously benefit from rate increases ( a quid or two a month maybe) but my mortgage would go up about £30 a month per quarter of a percent. So I'd prefer to keep it lower. I have a tracker mortgage and not a fixed rate one. Does anyone think we'll see a situation like the early 90's with a 12+% interest rate? Link to comment Share on other sites More sharing options...
Cyclone Posted September 13, 2006 Share Posted September 13, 2006 I've just taken out a new 2 year fixed (or rather am in the process of doing), so a rise now won't cause me any problems. I don't have any large savings amounts as any extra can just be plowed back into paying off the mortgage, so i'll see no effect either way. DB - I think it's unlikely that they'll go that high. Link to comment Share on other sites More sharing options...
RichD Posted September 13, 2006 Share Posted September 13, 2006 Does anyone think we'll see a situation like the early 90's with a 12+% interest rate? Depends whether the Tories seize back control of interest rates from the Bank of England when they get into power. If not, then no. The BoE are to a certain extent unbiased in their deliberations, as practices such as cutting rates to win votes (a common Tory practice in years gone by) does not apply to them. Also, if I recall correctly the BoE have never raised or lowered the rate by more than a quarter percent at a time since they took over. Before then, governments would raise or lower by much greater amounts (even a whole percent at a time) whenever it suited their purposes. Link to comment Share on other sites More sharing options...
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