Interest Rates Predictions For Next Couple Of Years

[Bumfluff]

What do people think interest rates will do over the 2 or 3 years period keep heading down or go backup at some point ? Need to remortgage was going to go for a fixed rate deal but thinking tracker or discount may be better now , best tracker rate deal I can get is a 3 year deal.

[threaded]

http://www.mydeadpony.com/images/theeconomy.jpg

[DimPrawn]

What do people think interest rates will do over the 2 or 3 years period keep heading down or go backup at some point ? Need to remortgage was going to go for a fixed rate deal but thinking tracker or discount may be better now , best tracker rate deal I can get is a 3 year deal.

If it were me and I needed a mortgage, I'd go tracker. In the next few years, regardless that inflation is really double digit, interest rates are heading towards zero.

See http://en.wikipedia.org/wiki/Japanes...t_price_bubble

[Peter Loew]

What do people think interest rates will do over the 2 or 3 years period keep heading down or go backup at some point ? Need to remortgage was going to go for a fixed rate deal but thinking tracker or discount may be better now , best tracker rate deal I can get is a 3 year deal.

I'd probably go tracker as well, but that would make me nervous because of inflation rates. The BoE last time I checked, did not want to cut interest rates next time round but keep them at 5.25%.

I was close to signing on the dotted line for a new first time buy flat purchase in central London, but let it go because a) I think it was slightly overvalued given the current economic climate b) even though it's central london there is already more stock on the market at more competitive prices and c) the current economic climate rings alarm bells in my head and I just don't trust it.

It's gonna be an interesting next few months.

P

[BrilloPad]

I reckon down. possibly.

HTH

[AtW]

I don't think morgage rates will go down though - do you really think that when in USA now the Fed dropped rates to 2.25% then actual morgages gone down significantly? No chance - banks won't lend at all in this climate, and even when they do they will be keeping morgage rates high to make up for their losses.

What effectively happens right now is that central banks give them cheaper money and banks will gain better margin that is hoped to reduce losses, helping the mugs (ordinary people who got into those games) is not on the agenda at the moment.

[BrilloPad]

I reckon up. possibly.

HTH

[the_duderama]

I can see higher end networking rates going up. There is still a demand for convergence in the public sector (mainly VOIP) and Cisco are complaining that their UK resellers do not have enough people with advanced knoweldge to deal with new and emerging technologies (read VOIP, Streaming media, Content switching etc).

I also think that the private sector, assuming that the current dip doesn't turn into a longer term resession/depression (i don't really understand the difference between the two), will start to invest again. Reason being the increasing use of "Software as Service" to hive off IT costs to a hosted solution, and the increased expectations from end users (Directors are users too) from peronal computing expereinces; social networking sites, video streaming etc, all reliant upon the network, and as is the nature of things these will filter through to business applications.

[Bumfluff]

Its bad time to remorg to be honest, lots of uncertainty and I cant find one deal that does shaft you in some way be it the fee up front, term or early repayment fee.