UK rates
 

UK inflation report possibly indicates that rates may not rise as much as expected....good for all you who went for floating rather than fixed mortgages.

Ted

heard that yesterday, BoE only expect to raise the interest rate by another quarter then leave it at that (thats the plan) although the BoE stated that things dont always go to plan :rolleyes:

I went for a floating rather than fixed 11 months ago - my repayments have only just reached what they would have been on a fixed rate. Needless to say I'm glad the rate rise forecast has improved (from my point of view).

BBC reports that
"The chances of another hike in the next month are not large," Mr Castle said.

Rates are expected to peak at about 5.1% over the two year horizon, before reaching 5.2% in 2007, the Bank's inflation report said.

Consumer price inflation will dip in the near-term before hitting the target of 2% over the next two years, it added.

...and the reports from last year were stating we wouldn't go above 4%.

The point is, no economist in the world can predict with any accuracy. They can take a measured guess, but just needs that oil price to keep shooting up (quite easy with today's hype & fear), and inflation will be on the rise again.

The only certain thing for the next 5 years is my mortgage rate - it's fixed :D The rest is a guess :D :D

but think of all that extra money you have paid out on your mortgage for those years, while others have been paying 3.75% etc...

I only fixed recently, so haven't been paying out recently....

As I've stated before, I'm happy with the downside risk - I'm only losing out on 1% at most from now on. Remember, rates have been at historic lows - only one way to go :D

The upside risk is unlimited....I'm happy to fix.

I'm only messing..

it's all about risk appetite, no-ones right or wrong

You have it correct there. Sadly, too many people chase the deals thinking it is low risk.