| What are peoples thoughts on interest rates over the next 2 or 3 years 10:58 - Jan 6 with 2434 views | homer_123 |
Inflation going up and costs in general are rising....my thinking is interest rates could rise sharply - maybe to 3% or 4% or more in that time period, if inflation cannot be managed.
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| What are peoples thoughts on interest rates over the next 2 or 3 years on 11:02 - Jan 6 with 1904 views | Keno |
Interest rates will go up, probably not very quickly this year, maybe to 1%
They will probably continue to rise afterwards but by how much will depend on various factors ranging from inflation, covid recovery and political influences |  |
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| What are peoples thoughts on interest rates over the next 2 or 3 years on 11:07 - Jan 6 with 1871 views | Kieran_Knows |
I fixed for 5 years this year, so hopefully that’ll see me through till things calm down again. |  |
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| What are peoples thoughts on interest rates over the next 2 or 3 years on 11:08 - Jan 6 with 1858 views | WeWereZombies |
| What are peoples thoughts on interest rates over the next 2 or 3 years on 11:02 - Jan 6 by Keno |
Interest rates will go up, probably not very quickly this year, maybe to 1%
They will probably continue to rise afterwards but by how much will depend on various factors ranging from inflation, covid recovery and political influences |
Many states around the World have built up and added to deficits during the pandemic. Will those states be happy to see interest rates rise if it means they have to raise more in tax to service the debt and consequently face a backlash from their electorate? |  |
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| What are peoples thoughts on interest rates over the next 2 or 3 years on 11:12 - Jan 6 with 1840 views | StokieBlue |
If interest rates hit 4% in that time period then the number of people defaulting on their mortgages is going to be pretty large.
For instance, if you have a 250k mortgage @ 2% then a rise to 5% (which would be likely with interest rates at 4%) would mean an increase in payments of ~400 per month.
SB |  | | |
| What are peoples thoughts on interest rates over the next 2 or 3 years on 11:12 - Jan 6 with 1834 views | giant_stow |
Obviously I'm no expert, but there is a possibility that rates could rise faster than people expect this year. There was an interesting piece in the dirty telegraph yesterday linking China's growing battle to stick to their zero covid plan with possible supply disruption and ensuing inflationary preasures. The upshot being that current inflationary preasures may not be so temporary. Could be right could be wrong. |  |
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| What are peoples thoughts on interest rates over the next 2 or 3 years on 11:13 - Jan 6 with 1833 views | Keno |
| What are peoples thoughts on interest rates over the next 2 or 3 years on 11:08 - Jan 6 by WeWereZombies |
Many states around the World have built up and added to deficits during the pandemic. Will those states be happy to see interest rates rise if it means they have to raise more in tax to service the debt and consequently face a backlash from their electorate? |
Without a doubt governments will want inflation too rise to deflate the vale of the debts but there are 2 or 3 factors to consider
1, a rise in interest rates will increase the cost of government borrowing (and thus tax burdens)
2, a rise interest rates may affect the economic recovery
3, sharp rises in interest rates will be unpopular and may lose governments elections | |
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| What are peoples thoughts on interest rates over the next 2 or 3 years on 11:25 - Jan 6 with 1744 views | Pinewoodblue |
| What are peoples thoughts on interest rates over the next 2 or 3 years on 11:13 - Jan 6 by Keno |
Without a doubt governments will want inflation too rise to deflate the vale of the debts but there are 2 or 3 factors to consider
1, a rise in interest rates will increase the cost of government borrowing (and thus tax burdens)
2, a rise interest rates may affect the economic recovery
3, sharp rises in interest rates will be unpopular and may lose governments elections |
Point 3 could work both ways. It could impact on Labour’s prospects , especially with the older voter. |  |
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| What are peoples thoughts on interest rates over the next 2 or 3 years on 11:33 - Jan 6 with 1725 views | homer_123 |
| What are peoples thoughts on interest rates over the next 2 or 3 years on 11:12 - Jan 6 by StokieBlue |
If interest rates hit 4% in that time period then the number of people defaulting on their mortgages is going to be pretty large.
For instance, if you have a 250k mortgage @ 2% then a rise to 5% (which would be likely with interest rates at 4%) would mean an increase in payments of ~400 per month.
SB |
Yep, this would be my first concern. | |
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| What are peoples thoughts on interest rates over the next 2 or 3 years on 11:34 - Jan 6 with 1727 views | ronnyd |
I'm of an age that remembers when the bank rate of the time was leading the mortgage rates to be in excess of 15%. Anyone now relying on savings to fund retirement, spending etc. is up sh!t creek. |  | | |
| What are peoples thoughts on interest rates over the next 2 or 3 years on 11:35 - Jan 6 with 1719 views | homer_123 |
| What are peoples thoughts on interest rates over the next 2 or 3 years on 11:34 - Jan 6 by ronnyd |
I'm of an age that remembers when the bank rate of the time was leading the mortgage rates to be in excess of 15%. Anyone now relying on savings to fund retirement, spending etc. is up sh!t creek. |
The effect on mortgages though from going from 0.5% to 4% is drastic....anyone relying on savings has been struggling for quite some time! | |
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| What are peoples thoughts on interest rates over the next 2 or 3 years on 11:38 - Jan 6 with 1704 views | Keno |
| What are peoples thoughts on interest rates over the next 2 or 3 years on 11:25 - Jan 6 by Pinewoodblue |
Point 3 could work both ways. It could impact on Labour’s prospects , especially with the older voter. |
It could but I think there are more people in the with mortgages than OAP's
I am looking for stats form the Office of made up statistics (Aks ONS) | |
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| What are peoples thoughts on interest rates over the next 2 or 3 years on 11:42 - Jan 6 with 1693 views | ronnyd |
| What are peoples thoughts on interest rates over the next 2 or 3 years on 11:35 - Jan 6 by homer_123 |
The effect on mortgages though from going from 0.5% to 4% is drastic....anyone relying on savings has been struggling for quite some time! |
Quite agree. Also the amount i paid for my house at the time was ten times less than what it's purported to be worth now. | | | |
| What are peoples thoughts on interest rates over the next 2 or 3 years on 11:49 - Jan 6 with 1659 views | WeWereZombies |
| What are peoples thoughts on interest rates over the next 2 or 3 years on 11:35 - Jan 6 by homer_123 |
The effect on mortgages though from going from 0.5% to 4% is drastic....anyone relying on savings has been struggling for quite some time! |
That depends upon where your savings are, if you are a little risk averse and have made a good choice of Stocks and Shares ISA for example should see a return well above inflation. | |
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| What are peoples thoughts on interest rates over the next 2 or 3 years on 11:51 - Jan 6 with 1646 views | footers |
I'm pretty interested at the moment what with the appointment of McKenna but will likely lose interest steadily as it becomes clearer that we won't reach the play-offs this year. Then I won't be interested at all for a few months, but I expect that to pick back up again come August. |  |
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| What are peoples thoughts on interest rates over the next 2 or 3 years on 12:03 - Jan 6 with 1564 views | homer_123 |
| What are peoples thoughts on interest rates over the next 2 or 3 years on 11:49 - Jan 6 by WeWereZombies |
That depends upon where your savings are, if you are a little risk averse and have made a good choice of Stocks and Shares ISA for example should see a return well above inflation. |
Yes, that's entirely true. | |
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| What are peoples thoughts on interest rates over the next 2 or 3 years on 12:17 - Jan 6 with 1520 views | J2BLUE |
| What are peoples thoughts on interest rates over the next 2 or 3 years on 11:07 - Jan 6 by Kieran_Knows |
I fixed for 5 years this year, so hopefully that’ll see me through till things calm down again. |
I locked in 7. Really considered 10 to be honest.
Dirt cheap and one less thing to worry about. |  |
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| What are peoples thoughts on interest rates over the next 2 or 3 years on 12:26 - Jan 6 with 1485 views | clive_baker |
There's only one way they can go from here. My guess would be:
This time next year 0.75%
Jan 2024: 1.5% |  |
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| What are peoples thoughts on interest rates over the next 2 or 3 years on 12:29 - Jan 6 with 1467 views | Coastalblue |
| What are peoples thoughts on interest rates over the next 2 or 3 years on 12:17 - Jan 6 by J2BLUE |
I locked in 7. Really considered 10 to be honest.
Dirt cheap and one less thing to worry about. |
I did 5, and the only reason I discounted 10 years in the end was the doubt that I'd still be living here then. 10 years would have virtually seen the end of my mortgage, not for the first time I might add. |  |
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| What are peoples thoughts on interest rates over the next 2 or 3 years on 12:29 - Jan 6 with 1464 views | clive_baker |
| What are peoples thoughts on interest rates over the next 2 or 3 years on 11:12 - Jan 6 by StokieBlue |
If interest rates hit 4% in that time period then the number of people defaulting on their mortgages is going to be pretty large.
For instance, if you have a 250k mortgage @ 2% then a rise to 5% (which would be likely with interest rates at 4%) would mean an increase in payments of ~400 per month.
SB |
At least utilities are so cheap at the moment to offset that... | |
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| What are peoples thoughts on interest rates over the next 2 or 3 years on 13:20 - Jan 6 with 1344 views | Guthrum |
Interest rates only control inflation if it's caused by excess spending with borrowed money. If, instead, inflation is caused by shortages or supply issues (or profiteering), then all it does is cause hardship by reducing people's access to funds. |  |
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| What are peoples thoughts on interest rates over the next 2 or 3 years on 13:36 - Jan 6 with 1307 views | Eireannach_gorm |
| What are peoples thoughts on interest rates over the next 2 or 3 years on 11:49 - Jan 6 by WeWereZombies |
That depends upon where your savings are, if you are a little risk averse and have made a good choice of Stocks and Shares ISA for example should see a return well above inflation. |
The company that I have my PRB with, allocated 80% of funds to cash which is actually losing money so I have now moved it to a different company with more beneficial choice of fund ( share funds are doing particularly well at the moment ).
On another note Irish inflation went from under 2% in April ( was minus value at the start of 2021 ) to over 5% in December and predicted to go to 7% mid 2022.
Moral of the story is not to leave your money idle or it will depreciate. On the mortgage front ( thankfully not a personal concern ), fixing the rate is probably wise. |  | | |
| What are peoples thoughts on interest rates over the next 2 or 3 years on 13:51 - Jan 6 with 1283 views | BanksterDebtSlave |
| What are peoples thoughts on interest rates over the next 2 or 3 years on 13:20 - Jan 6 by Guthrum |
Interest rates only control inflation if it's caused by excess spending with borrowed money. If, instead, inflation is caused by shortages or supply issues (or profiteering), then all it does is cause hardship by reducing people's access to funds. |
Isn't some of the inflation down to QE money sloshing around the system? Stagflation plus higher interest rates, now there's a heady mix! |  |
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| What are peoples thoughts on interest rates over the next 2 or 3 years on 13:54 - Jan 6 with 1274 views | lowhouseblue |
| What are peoples thoughts on interest rates over the next 2 or 3 years on 13:51 - Jan 6 by BanksterDebtSlave |
Isn't some of the inflation down to QE money sloshing around the system? Stagflation plus higher interest rates, now there's a heady mix! |
no, very much supply side inflation at the current time - so not QE. QE is expansionary (money sloshing around the system) but is only offsetting other contractionary forces (eg the pandemic). |  |
| And so as the loose-bowelled pigeon of time swoops low over the unsuspecting tourist of destiny, and the flatulent skunk of fate wanders into the air-conditioning system of eternity, I notice it's the end of the show |
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| What are peoples thoughts on interest rates over the next 2 or 3 years on 14:31 - Jan 6 with 1226 views | PrideOfTheEast |
| What are peoples thoughts on interest rates over the next 2 or 3 years on 13:36 - Jan 6 by Eireannach_gorm |
The company that I have my PRB with, allocated 80% of funds to cash which is actually losing money so I have now moved it to a different company with more beneficial choice of fund ( share funds are doing particularly well at the moment ).
On another note Irish inflation went from under 2% in April ( was minus value at the start of 2021 ) to over 5% in December and predicted to go to 7% mid 2022.
Moral of the story is not to leave your money idle or it will depreciate. On the mortgage front ( thankfully not a personal concern ), fixing the rate is probably wise. |
Absolutely. As always you have to make excess cash work for you. So at the moment, well over 80% of ours is invested in various trackers, funds, individual stocks etc. Very good returns but at a minimum you need to be beating inflation.
Some very good deals out there now for fixed rate mortgages which look an absolute steal. | | | |
| What are peoples thoughts on interest rates over the next 2 or 3 years on 14:34 - Jan 6 with 1205 views | BanksterDebtSlave |
| What are peoples thoughts on interest rates over the next 2 or 3 years on 13:54 - Jan 6 by lowhouseblue |
no, very much supply side inflation at the current time - so not QE. QE is expansionary (money sloshing around the system) but is only offsetting other contractionary forces (eg the pandemic). |
No carry over from the billions/trillions(?) before the pandemic? | |
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