Low Interest Rates : How long do you think it will last ?

[J-Tuner]

Off the back of news that the Interest rate is now 2% - how long do you think this will go on for before we start seeing a rise again ? 1 Year? 2 Years ?

A previously sphincter twitching prospect of moving onto Nothern Rocks previously high SVR is now actually a better prospect than any mortgage deal on the market. The plan is to ride the SVR rate down and jump back on a fixed (and probably take a hit with fees etc) when things start to rise again ? Good idea or not ?

Edited by J-Tuner on Thursday 4th December 13:07

[alfabadass]

I dont think they'll dare raise them too much ever again.

This whole panic started when they raised the rates and threatened to do so again, alhough it may have the timing with the sub prime fiasco.

One thing I don't understand is, with such low rates, why are loan deals not coming down

[BoRED S2upid]

Until the next general election?.

[blade runner]

Surely they'll have to be raised again at some time in the future when inflation starts to creep up?

What's your definition of low though? Even 6% is actually a pretty 'low' rate considering where they have been in the past (well into double figures). The current 'stupidly low' rates can't be sustainable for a very long period surely?

[NotHappy]

BoRED S2upid said:

Until the next general election?.

Bingo!

I hope they get down to 1% and stay there for a little longer.

[J-Tuner]

BoRED S2upid said:

Until the next general election?.

If thats the case its better than a smack in the mouth.. I'd rather have rates go up a bit and a new government than let that retard brown stay in any longer.

[SJobson]

anonymous said:

[redacted]

How much does car finance cost now? Say I wanted £25k of finance on, e.g, an 06 plate Jag XK or Merc CLS, what rates could I get? Putting down say £3k deposit.

Obviously any £30k-ish car has £30k of depreciation left to do, so a GFV would be desirable too.

[Fittster]

There's a school of thought we are following the path that the Japanesse economy went down. If that is true it could be for a decade or more.

[Davi]

Fittster said:

There's a school of thought we are following the path that the Japanesse economy went down. If that is true it could be for a decade or more.

in which case you want to try and find a discount rate below base