Economist needed!
I have so many questions about interest rates, recession etc, for years I have totaly ignored all this stuff because it didn't really impact my life but now, it does.
We have a flat in the UK that has been on the market for a year. the fixed rate ended and at first the standard variable killed us, however, now it is less per month than the fixed rate. This is because the Bank of England has lowered the rate.
Question...Is the Bank of England likely to rise interest rates astronomically in the next year or will they keep it low to encourage spending? If the answer is no, we may as well let it for a year. At the mo we would make about 300 pounds less than the mortgage payments, however, if the variable rate went up, it could kill us.
Any advice?
I can't trust anything that is at the mercy of the British Government, my cat is more reliable. I hear what you are saying but it is difficult to make a decision based on trusting them. I had a wonderful financial advisor who sorted out everything, but very sadly he passed away.
Thanks for the advice, jj
You said it for yourself the bank will keep the interest rate low or even lower it until the economy stablizes and recovers from the financial crisis. Once that happens then yes they will likely to rise the interests again but then your flat will be worth a lot more because in normal/ booming economies the first thing that goes up is real estate prices.