njkmrs

Just a quick one to cheer you guys up .

Rates set to stay at an all time low of .5% until 2011 and below 2% until 2014 .

Sound good to me .!!!!


Obviously the more wealthy amongst you ,it may not be as good .I can see Mattybouy reading this and shaking his head in anger ........

darts_aint_sport

Not good news.

davyboy

As I'll never be able to get a mortgage at these low rates...I guess this will have little impact on my day to day life.

davyboy

...apart from when I try and spend my money abroad.

FlightMan

This country is doomed, yet another nail in the coffin.

V5RLTD

iTrader: (5)

I hope it isnt .5% till 2011, fixed my mortgage for 4 years. Im paying slightly over what i was on a variable at the mo, just need it to go up .5% and im saving money.

Petem95

Sounding more and more like we're heading for a Japan-style 'lost decade'

Thanks Liebour for destroying the economy

Luminous

iTrader: (3)

I think people need to remember that the actual level of interest rates is only part of the picture. Its how the interest rates compared to inflation that is important. That is what determines if you lose money when you are saving.

However, low interest rates have got to be good to help kickstart the economy. Cheaper finance for businesses and hopefully lower mortgage rates to help people keep their homes.

Deep Singh

Where have the predictions for rates in 2014 come from??? Firstly nobody can predict what the rates will be in 5 years time! Secondly, there are 5 year fixed rate saving deals out there offering circa 4.5%, this would suggest that those banks are guessing rates will increase.

Steve vRS

The only people that this benefits are those on a tracker mortgage...that they started last October...

However, we are moving and need a top up mortgage and the deals on offer, given the low BoE rate, are silly.

Steve

hodgy0_2

surely low interest rates promote the entrepreneurial spirit and the building of businesses

isn't that what the economy needs?

and will prompt a rally in equities too -- good for bankers

Steve vRS

What sort of rates are the banks offering businesses? Part of the current mess is the choke on credit, regardless of it's cost.

Steve

Jay m A

iTrader: (2)

Base rate may be low, whats LIBOR at the mo?

hodgy0_2

the good risks are getting access to credit

what would scooby do

just under 0.6% IIRC

Cocker

iTrader: (3)

Hope we are in the recession for the next 20 years - variable mortgage for me - 0.8% above base rate happy times

Mortgage saving per month more than outways the interest i get on my savings anyway

I Love Gordon Brown and Mervin King

davyboy

So you for a 20 year variable rate mortgage did you?

zs_phil

iTrader: (1)

im loving this at the minute been on tracker since august of last year and every month just about went down and down

Janspeed

iTrader: (1)

Thought the recession was so bad there was no more money for coffins!!

warrenm2

This is unmitigated claptrap

f1_fan

iTrader: (9)

Petem95 at work yesterday:

njkmrs

[QUOTE=Deep Singh;8992314]Where have the predictions for rates in 2014 come from???

Up until 2014 !!!!! BBC News ,yesterday ,from some Economist Guru .


With the Economy fragile to say the least ,upping interest rates at the moment would surely send us back into freefall .Common sense really .


On a Tracker myself to be honest and got my statement a few weeks back .More than happy with the large chunk paid off in the last 6 months or so .(about 3 X the normal chunk of the Capital paid back .)

Will be quite happy to stay in recession for a while longer to be honest .

falkster

Does sound harsh but Ive got to agree. Im saving 3k per year in reduced mortgage. To get that back in savings the interest rate would have to be 10%.

Leslie

Its a bit hard on those who saved up during their working lives and were depending on interest on their savings to live on, especially with their heavily depleted pensions, thanks to Flash of course!

Les

Jay m A

iTrader: (2)

There were some great deals out there before this whole turmoil started, all related to base rate and not to lenders SVR, for example 1% base discount tracker for 2 years, then base + <1% for rest of term.

I don't think I'll be changing my product anytime soon.

Jay m A

iTrader: (2)

Thankyou. No wonder banks are showing profits this year

TelBoy

Hold on hold on. LIBOR for what period? There isn't just one LIBOR rate before you all go getting your knickers in a twist about how the banks are raping and pillaging!!

TelBoy

My thoughts exactly

Who are you quoting, njkmrs? David Smith in the Sunday Times? Or is it just your hunch?

warrenm2

its from this BBC NEWS | Business | UK rates 'to stay low for years'

Jay m A

iTrader: (2)

Hey I was only going by the news reports earlier this year, quite a few banks have been making profits. And high lending rates were reportedly (amoungst other things) due to LIBOR being high relative to base at the time. Now if LIBOR has reduced and the lending rates haven't by as much then fine, good for them, my underwear is nicely aligned.

I do read the Times though!