UK Interest Rates
 

Bank of England hints at (with conditions) low interest rates for the next 3 years. Not much good for savers. Good news for business and mortgagees. It may even help re-kindle interest in overseas markets and inward investment.

Re: UK Interest Rates
 

At least you know where you stand and it is easier to plan ahead, although there are caveats.

Re: UK Interest Rates
 

Good news indeed for homeowners.

I have heard many different time spans on low rates. My worry will be if there is any control shown once they start increasing :unsure:

Too many greed merchants will be wanting to recoup their perceived losses!

Re: UK Interest Rates
 

One of the downsides is for those looking to take a pension.
Will interest rates staying low annuity rates will also be low.
Your savings also receive virtually no interest.

Some you win, some you lose.
It would be nice to win sometimes.

Re: UK Interest Rates
 

At least the pound is holding steady at about 1.16. Worrying me a little - I have to transfer some money next month. Unlikely to change much over that time?

Re: UK Interest Rates
 

I am one affected by low interest rates, in the Autumn I have a 5 year bond finishing which has been paying 7%:frown: however it could possibly work ok in the long term as people look to other ways of investment on the stock market or in private equity thus assisting the economy. The downside it could just encourage more people to buy to rent. Some lenders are offering rates like 1.64% fixed, no brainer really.

Re: UK Interest Rates
 

Thats what's happened over the past 5 years in the UK and why the property market has recovered from the 2008 crash

Anybody with cash has to look to property or shares to get any returns.

Interest rates will be kept low for the next 20 years, nevermind the next 2-3 years, otherwise the property and share bubble will explode again as people cash in their assets i.e. deleverage

I have cash waiting for a decent property to buy here in Asturias. Although prices have come down from peak, there is still very little value in the market. People are playing a waiting game, it seems that nobody actually needs to sell.

The same places are for sale now as from a year or so ago. I have called up a couple of owners who have their flat for sale, and they say they are not prepared to negotiate on the price :blink: Frustrating. I will try again next year when they are still up for sale :D