Interest rates

[YELROM]

What are peoples opinions on interest rates going forward, as you can get a fix rate at a cost of about 1.5% over variable for 20yrs at the moment.

 

[Drillman]

I'm no expert on the subject but as far as I can see interest rates can only go one way. When that will happen is anyone's guess.

Strangely though we are trying to reduce our borrowings at the moment.

 

[Poncherello1976]

There is only one way for them to go, but I can not see them rising to far too quickly. There is far too much debt around, personal and public, for the government/BoE to be firing up the interest rates too far. Obviously I am a farmer and so could be totally wrong but that is my thoughts. Though one of my new year jobs will be to get our loan on to a fixed rate or split it up to part fixed/part variable.

 

[YELROM]

I'm no expert on the subject but as far as I can see interest rates can only go one way. When that will happen is anyone's guess.

Strangely though we are trying to reduce our borrowings at the moment.

I get what you are saying that interest rates can only go one way,just after peoples views on how much(obviously a crystal ball question)
I think 1.5% over variable seems good for a 20yr fixed, but adds a lot when rates are so low
Also after being bitten before with fixed rate just makes me dubious to fix again

 

[ollie989898]

I think you will see interest rates largely the same as they are now for the next 5 years until the wider economic situation improves.

The major economies are all very tender, big hikes in interest rates would murder them instantly.

Look at the levels of private debt we have about. And with the drive for lenders to lend money, that all comes to a big halt if rates go up any sense.

If oil and currency continue to move about as they do, they will be hard pressed to raise rates any sense.

I know a lot of you are anxious to see the results of Brexit yet, I'm way more interested in how Trump VS China is gonna play out. I don't see how anyone can play hardball with them if they own such a sizeable chunk of the US public debt?

 

[SilliamWhale]

What are peoples opinions on interest rates going forward, as you can get a fix rate at a cost of about 1.5% over variable for 20yrs at the moment.

Do the calculation. For every year you keep to the variable you are saving 1.5% on the fixed anyway. So ask yourself if you are willing to pay more now for the security of knowing. That 1.5% over 20 years is worth how much to you?

 

[Sussex Martin]

If I was the person deciding on interest rates I would certainly be looking at raising it in small increments to curb peoples borrowings. The reason there is so much debt is because is so cheap to borrow at the moment.

 

[Roger Perry]

We have just had a 25 point rise with three more promised in 2017.
The American economy is starting a big upswing already (Goldman up 30% since election/ Dow up 1000 points in last 6 weeks)
The economists say with a more vibrant economy than we have seen over the last eight years a steady rise in rates is a good thing.......at last savers will start to see more of a return on their cash.

 

[Roger Perry]

Just to add, the U.S. China debacle will not go anywhere, China owns $1.6 trillion of our debt but what can they do.........Dollars are the only currency worth holding, going up in value.........if China liquidated its' dollars where would it invest.........dollars are the only currency with a future right now, hence since the election billions of Euro's etc being changed for $$$$

 

[db9go]

If I was the person deciding on interest rates I would certainly be looking at raising it in small increments to curb peoples borrowings. The reason there is so much debt is because is so cheap to borrow at the moment.

The base rate is low but most people do not borrow at that rate .
That margin over base now is nearly at an all time high

 

[ollie989898]

If I was the person deciding on interest rates I would certainly be looking at raising it in small increments to curb peoples borrowings. The reason there is so much debt is because is so cheap to borrow at the moment.

Thank you Jeremy (Corbyn) for your fine fiscal policy, I doubt the millions of mortgage holders today will be so impressed by your ideas but you can't please every voter, can you?

 

[ollie989898]

Just to add, the U.S. China debacle will not go anywhere, China owns $1.6 trillion of our debt but what can they do.........Dollars are the only currency worth holding, going up in value.........if China liquidated its' dollars where would it invest.........dollars are the only currency with a future right now, hence since the election billions of Euro's etc being changed for $$$$

If they liquidate their holdings, your currency will skyfall.

 

[Roger Perry]

But they will never do it............because where else will they get a better return.......?.........Euro/Yen.........name it
The next 5 years are going to be great yrs for the Dollar.

This leaves aside any damage to their exports.

 

[Frodo2]

Do the calculation. For every year you keep to the variable you are saving 1.5% on the fixed anyway. So ask yourself if you are willing to pay more now for the security of knowing. That 1.5% over 20 years is worth how much to you?

Also remember that the 1.5% is against the whole loan where in 20 years most of it will be paid off so it will not matter if interest rates rocket. I have a big chunk on fixed and obviously with the great benefit of hindsight now think it was the wrong thing. Now I would just go for the cheapest and pay it off as quickly as possible again something which fixed rate may restrict you from doing.

 

[Sussex Martin]

Thank you Jeremy (Corbyn) for your fine fiscal policy, I doubt the millions of mortgage holders today will be so impressed by your ideas but you can't please every voter, can you?

Well done, no idea what to do but slag someone else's point of view, nice. The can is being kicked down the road for too long already, low interest rates encourage unsustainable spending and reduced savings, the present policy of low interest rates has to be reversed at some time, not all at once but in small stages to get to grips with the present chaos. The Sh!t will hit the fan big time soon and your suggestion is what? Bury your head in the sand and hope things will get better when you know damn well it won't, once again well done .

 

[bobk]

Low interest rates are here to stay, told @Walterp 5 years ago when he was predicting hyper inflation , what happened to that theory

 

[Wooly]

What are peoples opinions on interest rates going forward, as you can get a fix rate at a cost of about 1.5% over variable for 20yrs at the moment.

So who offers that rate for 20 years?

Certainly not the bank that I deal with!

 

[YELROM]

So who offers that rate for 20 years?

Certainly not the bank that I deal with!

The AMC

 

[ollie989898]

But they will never do it............because where else will they get a better return.......?.........Euro/Yen.........name it
The next 5 years are going to be great yrs for the Dollar.

This leaves aside any damage to their exports.

Roger, one does not invest in US treasury bills because of their return.

They are traditionally very safe investments, held over a long period of time, they represent security, as oppose to very high returns or a quick buck.

 

[coomoo]

Just turned 35 married two kids of 3 and 1 running around excited about santa. Wife teaches 4 days a week and I'm milking cows 7 days a week. For our age group borrowing money is going to be a necessity re house prices mortgages childcare pensions wages ..... I may be wrong of course but to keep economies moving this is where am at. Borrowing wise I'd spread it even 3 ways. Should add I was brought up staunchly of the belief don't buy it unless you've got the money.