Interest Rates Up or Down

[Mailman_1]

3% = 5-6% mortgage rates

Current variable rates are around 3.75% above base.

The deal you get will largeley depend on how much deposit you have.

25%+ will at best get you around 3.5% above base (As long as you can adhere to all of the other conditions). So a 3% base rate will put you at a 6.5% mortgage rate if the banks stay on the same course.

A 10-15% deposit will get you around 5% above base.

These figures are current of course and may change.

[orac]

3%

3% = 5-6% mortgage rates

[Mailman_1]

I don't think that's a bad thing ... house prices at the moment still mean that your average Joe has a mortgage of 5 or 6 times annual income. We need house prices back to a max of 3 times annual income .... besides, getting a return on savings will encourage investment.

Your never going to get prices down to 3x annual income. Investors will snap the properties up when they reflect a decent yeild on the investment. Properties are reflecting 10%+ yeilds at the current prices. They have been happy with a 3% yeild and capital gains over the last few years. Its still better than money in the bank. If people wait for 3x annual income mortgages / house prices, we will have a country full of investor owned properties.

[TriggerHippy]

I would expect the base rate to stay below 2% for at least 2-3 yrs. The banks rates will probably stay around the 5-6% mark. Any higher and property prices will stagnate or fall due to the prices of the repayments. IMO of course.

I don't think that's a bad thing ... house prices at the moment still mean that your average Joe has a mortgage of 5 or 6 times annual income. We need house prices back to a max of 3 times annual income .... besides, getting a return on savings will encourage investment.

[Mailman_1]

I would expect the base rate to stay below 2% for at least 2-3 yrs. The banks rates will probably stay around the 5-6% mark. Any higher and property prices will stagnate or fall due to the prices of the repayments. IMO of course.

[Andy2]

I predict that it could be up or could be down

[DiscoStu]

Poor Andyw option.

[TriggerHippy]

I don't think interest rates can remain at virtually zero forever .... my guess in that 2010 is going to be another painful year.
I'm hoping that encourages McBroon towards a November election.

[Cyberman]

Interest rates will remain low because we will still be coming out of a recession, taxes will be rising, public services will be cut, 4 million will be unemployed and up to a million will be dead due to swineflu.

[DimPrawn]

hyper-inflation will be left to wipe out all the trillions printed and in personal/government debts.

Interest rates will be left low to encourage hyper-inflation and recreate the debt bubble.

Shame about savings and pensions, etc.

[Smurficus]

Return to the top end of your low.

May even earn interest on bank balances again!

[BlackenedBiker]

poll?

Yes Chef!

[HairyArsedBloke]

Low, possibly at the lowest end of your medium range, for some considerable time with no attempt to combat the high inflation that prior lax monetary policies have caused in a attempt to erase the huge level of debt.

[chef]

poll?

[BlackenedBiker]

Learned Posters,

What do you think, are we in for high interest rates (above 10%) medium (say between 5% - 10%) or low.

And if interest rates are to rise, over what period?