General (main property discussion here) - Interest increases

5.0% by year end?

5.5% by March next year?

i dont think there is nay chance of 5.5% by march. 5.0% maximum.

good news if this happens as might force people to sell. well i can only hope. ive got wonga and want to buy.

I think interest rates are unlikely to go up as mortgage borrowing is down this month and house prices and sales are also down.

Oil prices have peaked thus alleviating Mr Brown's biggest worry.

Julie

Having looked at the recent SWAP rates I believe they make interesting reading, not least because 2 year SWAP rates have fallen below 5% for the first time since March this year.

Rates may be approaching the top of the current interest rate increases and I am hoping that 2 year fixed rates will get closer to 4.5%. The fall in 2 year SWAPS is another reason why this may be the case.

It will be interesting to see if this fall is reversed after Mervyn King's recent 'never had it so good, but cannot continue' comments !

This is not to be taken as advise or the opinion of Savills Private Finance, it is only an opinion of the writer.

5 yr must also have also come in a bucket load. from a yield curve perspective perhaps the most interesting things is the flatness. no rocky terrain in the UK. 2 - 20 yr swaps maybe 10bps difference. can't last forever.

with swaps moving in across the curve......must be close to time to consider long-dated fixing?

i will be.

Stephen,

Nice and technical your response.

I think your arguement is valid up to a point for long-term fixing but I am waiting to see want the Christmas spend is like. There are already signs (reduced retail spend and stabilising house prices) that rates may even fall a touch. Also the US recovery will be important.

In summary, I'm holding out til January. Also typically, mortgage companies have good products at the start of the year.

Julian

Agree with Stephen.

Rates will be no higher than 5.25 by middle of next year.