Prospects of interest rates cut

Financial Chat
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BBC News - Fall in inflation raises prospects of interest rate cut

Time to grab fixed rates while we can then?

Had hoped for an increase, however, appears unlikely in the short term.

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Think he means fixed rate savings

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Inflation is already shredding any gains youā€™d make on any fixed rate savings. Itā€™s better to invest it.

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I do indeed.

I donā€™t borrow. Donā€™t believe in it, aside of my paid off mortgage anyway.

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Changes in the interest rate donā€™t seem to have had that much of an effect on borrowing rates. Credit card interest rates are still in the high teens (as they were 20 years ago); loan and mortgage rates are still between 3-8%, as they have been for a while too. However, savings rates seem to drop almost in anticipation of a rate cut.

As @Cameron suggests, investing is probably the only option right now, aside from cash put aside for emergencies.

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This. Iā€™ve got an instant-access savings account with a few months worth of salary in it that will cover me in case of emergencies, but the interest rate is so low that everything I ā€˜saveā€™ now is going into investing instead of savings.

Granted, investments may fall as well as rise, and gains arenā€™t really real until I sell a position; but as it stands, on paper (or perhaps I should say electrons?) my percentage increase has been greater than putting the same amount into any savings account wouldā€™ve achieved.

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Investing normally means putting money out if reach for more than twelve months to help balance out those troughs and peaks.

Personally, that does not suit me.

I accept the comments about inflation devaluing anything saved in current and savings accounts though. Purchase power depreciating month by month.

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Yeah same.

Barclays launched a 2 year fix at 1.12% this week.

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Same here. Never had a mortgage above 2%. Quite happy for interest rates to stay low as long as possible imo

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At least until I get my mortgage paid :wink:

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Wish rates were like that when I had a mortgage.

I fixed for 7 years in 2007 at 5.39% . . . then we had the crash and rates dropped.

At least it was paid off in 2014 :grin:

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Thatā€™s true - in my case Iā€™m not wanting to take anything out of my stock market investments for at least ten years. Its very much a case of salting it away for the long-term. As far as what Iā€™ve put in to crowdfunding goes, while thatā€™s also long-term, Iā€™m more at the mercy of the exit strategy for the companies involved, though in both cases Iā€™d hope that if the IPO I can buy back in (and also realise I may yet lose it all).

But yeah, definitely agree that you should do what suits you, and that if investing doesnā€™t suit you, donā€™t do it! If I didnā€™t have an instant-access safety net, I wouldnā€™t be investing in anything at all.

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Youā€™ve got the best rate on the market now :slightly_smiling_face:

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How i can get money?

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Employment is the usual way. Or theft

What exactly do you mean?

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You forgot magic. :woman_mage: :wink:

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Fixed that for you :grinning:

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Is that the initial rate? If so, what does it jump to in a couple of years?

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My fixed rate ends this month and the variable is 4.24%. Halifax are only offering 3yr as the minimum term and at a rate of 2.84%. So Iā€™m thinking I may stay on the variable to see if the rates do drop.

Otherwise anyone know the best site to compare help to buy accepted mortgages?

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