Interest rates

Discussion in 'Bulletin Board' started by mansfield_red, Sep 22, 2022.

  1. man

    mansfield_red Well-Known Member

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    Now forecast to hit c.5% next May/June.

    This is going to be grim for a lot of people who come off fixed term mortgages over the next year or so - if this is you I would be looking at what your early redemption penalties are and whether you are best served by paying them and remortgaging now (or at least getting an offer at today's rates and sitting on it for a few months before deciding whether to take it - most offers are good for 6 months).
     
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  2. Red

    RedMonk Well-Known Member

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    I fixed mine for 5 years just before the last rise. Glad I did now. Easy to do with your current provider as it's classed as a product transfer, did it all online.
     
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  3. Red

    Red Rob Well-Known Member

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    I doubt interest rates will reach 5%. The government is £2.3 trillion in debt, 5% interest would bankrupt them.

    Also believe that the government are quite happy with higher inflation at the moment, it reduces their debt in real terms and allows them to borrow more, not to mind massaging GDP figures. Keeping inflation above interest rates is key for them at the moment.
     
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  4. MDG

    MDG Well-Known Member

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    I doubt they will increase much more. It all depends on inflation really.

    But a lot of economists are now suggesting that the predicted 12 to 15% inflation won't happen and we have actually peaked out.

    So if inflation stays at same level or starts to ease then I doubt they will increase.
     
  5. arabian_ian

    arabian_ian Well-Known Member

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    Never any news on savings rates.
    Us of a certain age have been through all this interest rate rises and worse throughout the 70s.
    Time for a bit of pay back for us but I won’t hold my breath.
     
  6. Mr Badger

    Mr Badger Well-Known Member

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    I want inflation to hit 20% .... at least until they apply the triple lock percentage to pensions. The higher the better for us !
    Then after they've had to apply this I want the interest rate to tumble.
    I'm not mercenary. Not me.
     
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  7. Red

    Red Rob Well-Known Member

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    Sadly zero point in having savings anymore, they erode so fast with inflation and the interest doesn't keep up. Same for Bonds, you lose money in real terms. The only way to store wealth is to invest it, which is a bit **** if you don't want to be an investor.
     
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  8. Rev

    Revvie P Well-Known Member

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    And even ****er if you're as **** at picking a winner as I am.
     
  9. Red

    Redblueunwhite Well-Known Member

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    Sorry iam not very savvy on all this despite being old lol, but do you mean Premium Bonds? Ta.
     
  10. Red

    Red Rob Well-Known Member

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    With average luck I think the return on premium bonds is around 1.5%. Inflation is 9.9% at the moment. So if you have your savings on bonds at the moment you are losing 8.4% a year in buying power.

    The government has historically aimed for 2% inflation and this is what the Bank of England are tasked to achieve. So with bonds your savings normally wouldn't dwindle too much and are an extremely safe investment. With the government now using quantitative easing as a norm and not even trying to 'balance the books' I'd expect inflation to be higher going forward as it helps the government pay off their huge dept.

    Eg you take a 10 year government bond now at say 1.3% for £1,000, if inflation is 4% a year the gov will have to pay back less than they borrowed in real terms. This is what's currently propping up the economy despite huge government expenditure.
     
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  11. Red

    Redblueunwhite Well-Known Member

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    Cheers
     
  12. man

    manicminergb Member

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    as an oap ive been well and truly crapped on by the shytalk tories say it quickly = pension increase this year£4 per week triple lock abandoned for this year.!!!! They are
    'giving me aprox £700' in1 off payments. Even though my power bills have increased from £1800 in March to £3600 now.
    they tell us that the c.p.i is at 9% but what about the r.p.i. index it is over 13% r.p.i
    The c.p.i. does not cover mortgage increases.etc. Those earning over £11.000 would have had to pay 1.4% more in national insurance contributions. and those earning over £100,000 + at 1.4%, +£400 for their houses They are even gonna be better off with the proposed tax cuts. what the hell is Stammer (misspelt) doing.Oh we are asking about a civil servant being a witness to a fraud investigation lol. Are we all in it together
     
  13. Shy Talk

    Shy Talk Well-Known Member

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    You seriously believe they'll apply the triple lock?
     
  14. exiled

    exiled Well-Known Member

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    Just bang it all into HEX!





























    No don't really.
     
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  15. x11barnsley

    x11barnsley Well-Known Member

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    Ahhhhhh…. too late

     
  16. Redstone

    Redstone Well-Known Member

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    My new 5 year fix kicks in from 1st October. This was set up about 6 months ago by my mortgage advisor. It's small increase on what I was paying (but actually still less than what I was paying with my overpayment)
    I'm very grateful that he found me the deal and that I dropped for coming off my fix when I did.
    It's going to be too much for many to absorb on top of everything else that's going on.
     
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  17. Journo Tyke

    Journo Tyke Well-Known Member

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    Here to help anyone that wants to fix! Drop me a message.
     
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  18. lk3

    lk311 Well-Known Member

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    Is your username after the 80s game or your ability at work?
     
  19. MDG

    MDG Well-Known Member

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    I baffled at how you can be spending £3,600 on your energy bills. That's 300 quid per month.. How are you racking that up?

    Mine for a 3 bed house is now £180 per month and we are big users of electricity, working from home so on all day.. Also powering all my music gear...
    How come you are paying £300 per month on average?
     
  20. andytyke

    andytyke Administrator Staff Member Admin

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    Fixed for 5 years in February. But would be very surprised if they were 5% next spring
     
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