# Intrest Rates



## s2kpaul (Jul 27, 2006)

Bit of a newbie on intrest rates. Now obviously the BOE intrest rate will go up prob next year and so on. But how high can/will they go ? Im on a fixed rate mortgage atm so what happens when i come off in 5 years and will drop to the variable rate of 4% ( as quoted now) and say the BOE rate is 6% ? Where does that leave me as approx 1% rise is about £62


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## OutLore (Jan 19, 2007)

It's been as high as 17% in the past, though (late 70s IIRC) I doubt it would ever get that high again, but stranger things have happened.


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## underwurlde (Jun 20, 2010)

guessing you've a mortage to pay back of 75K over 25 years would equate to a 1% interest payment of £62

4% variable + 6% base = 10%, i.e 10x more i.e. interest payment now £620 per month.

If that was a repayment mortage and at start of the term, then expect 75K/25/12 = 250 = £870 pcm. yikes.

Andy


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## s2kpaul (Jul 27, 2006)

im sure other people are/will have a mad increase. I was wonderering worse case 10% 15% 20% which woul prob put half of britain on the streets.


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## one_question (Nov 12, 2008)

The base rate will go up at some point.

Are you on a fixed rate for 5 further years at 6%? When did you take it out?

Our fixed rate 5.89% runs out this month - yippee! Down to 3.94% or £250 (approx) reduction. Will be whacking that £250 onto the mortgage as, when it does start going up, we want the capital to be as low as poss.


G


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## Avanti (Jan 17, 2006)

one_question said:


> The base rate will go up at some point.
> 
> Are you on a fixed rate for 5 further years at 6%? When did you take it out?
> 
> ...


A very wise idea, when interest rates were falling I requested the bank take the same amount every month until such time the interest rates increased and I would need to make greater payments, I end up paying the mortgage off more than 7yrs early :thumb:
Saying that I don't feel better off


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