I have little idea what Im talking about when it comes to economics, but wouldnt shares perhaps track inflation to a certain extent, at least to a greater extent than interest rates, which arent going to get close to the forecast 12-15-18% inflation figures being bandied about?
I see that Charter Savings Bank now offer a one year fixed rate of 3.25%. For a senior person that starts to look like an attractive alternative to the fund portfolio. The question raised by your last sentence though, is whether there will soon be an even better offer. And at the same time, if you are right about the direction of markets then there's probably a 50 % chance that in a year's time the average portfolio won't be more than 3.25% higher than now...
Rates are still going up on savings products. You can get 3.5% fix for 1 year via certain platforms that off a bonus. Base rate may hit 2.5% next year, possibly 3%. Saving rates will follow. I am starting to get automatic interest rate increases on products that never used to offer them. Chase at 1.5% starting to look average.
At the moment it's interesting that the 2/3/5 year fixes aren't really any better than the 1 years (only marginally). With the best 5 year about 3.6%.
the one years at 3.5% are tempting, although with inflation you're effectively still losing money in real terms.
I think rates will continue to rise but in very small increments and more likely as a base rate increases the lower paying accounts will start to catch up with the top payers.
For any serious amounts you still have the tax issue, as ISA cash accounts are still poor.
Any of you know of any decent ISAS/savings accounts/children trust type investments?
My boy arrives in Dec and would like to start one, but this isn’t an area I know anything about
A word of warning. If you set up a junior ISA then it becomes theirs by right when they turn 18. No ifs or buts. So if you are happy letting your 18 your old child have access to thousands of pounds to do what they like then that's fine.
Otherwise you could simply open an ISA in your name (you have a £20k per annum allowance) and then when they are 18 you can give them as much or as little as you like. No need to have special accounts in their names if you think that they might blow it all within months.
Bank Base Rate meeting tomorrow, with forecasts saying 0.5 or even a 0.75% increase to 2.25 or 2.5%. This could push 1 year bonds to 3.5% …. Is now the time to go in…..
Bank Base Rate meeting tomorrow, with forecasts saying 0.5 or even a 0.75% increase to 2.25 or 2.5%. This could push 1 year bonds to 3.5% …. Is now the time to go in…..
Go in where ?? Bonds ? Equities ?
if its equities then you might be missing the boat. FTSE up 0.8% this morning. Unless you are a trader on the floor then its never wise to try to time the markets.
Golfie, go into one year bond, wasn’t clear in my comment… ? I have a £70,000 bond maturing early next month at 1.6%. Thinking half in after this rate rise, and hold half for the next …. ?
I would agree - you can get close to 3.5% now on a 1 year deal - come early next year that is likely to be 5-6%.
Yes, but say Feb I can get 5% that’s me out of the high rate of 3.5% for 5 or 6 months waiting for 5%. So need to look at the balance between them. If I keep in Easy access I’m likely to be 1.5% lower over those months.
Still nice problem to have for a change, instead of scratching round for 0.5%.
I don't think you are likely to see 1 year fixes increase in line with the base rate moving TBH.
The longer fixes will be interesting as a not a lot in a 2 year v 5 year fix with a lot of places, indicating they've already priced in a certain amount of increase in the up to 2 year fix.
Today will be interesting, many predicting a 0.5-0.75 increase. Some people with mortgage fixes coming to an end are going to be in a whole lot of pain. Here comes the crash!!
I don't think you are likely to see 1 year fixes increase in line with the base rate moving TBH.
The longer fixes will be interesting as a not a lot in a 2 year v 5 year fix with a lot of places, indicating they've already priced in a certain amount of increase in the up to 2 year fix.
Today will be interesting, many predicting a 0.5-0.75 increase. Some people with mortgage fixes coming to an end are going to be in a whole lot of pain. Here comes the crash!!
Mortgage fixed rates are interesting at the moment. Shorter 2 & 3 year ones are startimg to get more expensive than the longer 5 year ones, which has never been the case in the past.
I don't think you are likely to see 1 year fixes increase in line with the base rate moving TBH.
The longer fixes will be interesting as a not a lot in a 2 year v 5 year fix with a lot of places, indicating they've already priced in a certain amount of increase in the up to 2 year fix.
Today will be interesting, many predicting a 0.5-0.75 increase. Some people with mortgage fixes coming to an end are going to be in a whole lot of pain. Here comes the crash!!
My fixed rate mortgage comes to an end in December. Its not a massive mortgage - so I think I will take money out of savings, sell some equities and maybe cash in an ISA and pay it off. I think that is the best option - any opinions out there?
I don't think you are likely to see 1 year fixes increase in line with the base rate moving TBH.
The longer fixes will be interesting as a not a lot in a 2 year v 5 year fix with a lot of places, indicating they've already priced in a certain amount of increase in the up to 2 year fix.
Today will be interesting, many predicting a 0.5-0.75 increase. Some people with mortgage fixes coming to an end are going to be in a whole lot of pain. Here comes the crash!!
My fixed rate mortgage comes to an end in December. Its not a massive mortgage - so I think I will take money out of savings, sell some equities and maybe cash in an ISA and pay it off. I think that is the best option - any opinions out there?
Totally depends on what rate you can get on a mortgage v's savings/investments and their tax position.
I don't think you are likely to see 1 year fixes increase in line with the base rate moving TBH.
The longer fixes will be interesting as a not a lot in a 2 year v 5 year fix with a lot of places, indicating they've already priced in a certain amount of increase in the up to 2 year fix.
Today will be interesting, many predicting a 0.5-0.75 increase. Some people with mortgage fixes coming to an end are going to be in a whole lot of pain. Here comes the crash!!
Mortgage fixed rates are interesting at the moment. Shorter 2 & 3 year ones are startimg to get more expensive than the longer 5 year ones, which has never been the case in the past.
does this mean mortgage companies/banks are expecting interest rates to go back down in 5 years?
I don't think you are likely to see 1 year fixes increase in line with the base rate moving TBH.
The longer fixes will be interesting as a not a lot in a 2 year v 5 year fix with a lot of places, indicating they've already priced in a certain amount of increase in the up to 2 year fix.
Today will be interesting, many predicting a 0.5-0.75 increase. Some people with mortgage fixes coming to an end are going to be in a whole lot of pain. Here comes the crash!!
Mortgage fixed rates are interesting at the moment. Shorter 2 & 3 year ones are startimg to get more expensive than the longer 5 year ones, which has never been the case in the past.
does this mean mortgage companies/banks are expecting interest rates to go back down in 5 years?
I don't think you are likely to see 1 year fixes increase in line with the base rate moving TBH.
The longer fixes will be interesting as a not a lot in a 2 year v 5 year fix with a lot of places, indicating they've already priced in a certain amount of increase in the up to 2 year fix.
Today will be interesting, many predicting a 0.5-0.75 increase. Some people with mortgage fixes coming to an end are going to be in a whole lot of pain. Here comes the crash!!
I don't think you are likely to see 1 year fixes increase in line with the base rate moving TBH.
The longer fixes will be interesting as a not a lot in a 2 year v 5 year fix with a lot of places, indicating they've already priced in a certain amount of increase in the up to 2 year fix.
Today will be interesting, many predicting a 0.5-0.75 increase. Some people with mortgage fixes coming to an end are going to be in a whole lot of pain. Here comes the crash!!
I don't think you are likely to see 1 year fixes increase in line with the base rate moving TBH.
The longer fixes will be interesting as a not a lot in a 2 year v 5 year fix with a lot of places, indicating they've already priced in a certain amount of increase in the up to 2 year fix.
Today will be interesting, many predicting a 0.5-0.75 increase. Some people with mortgage fixes coming to an end are going to be in a whole lot of pain. Here comes the crash!!
Are you suggesting a house price crash?
Recession, rising interest rates and repossessions would historically tend to lead to a house price fall (crash may be too strong a word).
However, there is such a huge problem with housing stock availability that it may buck the trend this time around. I anticipate flat property prices over the next couple of years rather than any significant reset.
I don't think you are likely to see 1 year fixes increase in line with the base rate moving TBH.
The longer fixes will be interesting as a not a lot in a 2 year v 5 year fix with a lot of places, indicating they've already priced in a certain amount of increase in the up to 2 year fix.
Today will be interesting, many predicting a 0.5-0.75 increase. Some people with mortgage fixes coming to an end are going to be in a whole lot of pain. Here comes the crash!!
Mortgage fixed rates are interesting at the moment. Shorter 2 & 3 year ones are startimg to get more expensive than the longer 5 year ones, which has never been the case in the past.
does this mean mortgage companies/banks are expecting interest rates to go back down in 5 years?
I don't think you are likely to see 1 year fixes increase in line with the base rate moving TBH.
The longer fixes will be interesting as a not a lot in a 2 year v 5 year fix with a lot of places, indicating they've already priced in a certain amount of increase in the up to 2 year fix.
Today will be interesting, many predicting a 0.5-0.75 increase. Some people with mortgage fixes coming to an end are going to be in a whole lot of pain. Here comes the crash!!
Are you suggesting a house price crash?
I've heard it said that Liz Truss could be freezing / suspending Stamp Duty again. I dont think they will but who knows with this new Government.
Comments
the one years at 3.5% are tempting, although with inflation you're effectively still losing money in real terms.
I think rates will continue to rise but in very small increments and more likely as a base rate increases the lower paying accounts will start to catch up with the top payers.
For any serious amounts you still have the tax issue, as ISA cash accounts are still poor.
My boy arrives in Dec and would like to start one, but this isn’t an area I know anything about
https://www.onefamily.com/junior-bond/
You've also got the junior ISA's, personally if you are doing for them until 18 I'd go a Junior Stocks & shares ISA.
PS, if he's born 6th December you'll have to name him R7L.....
Otherwise you could simply open an ISA in your name (you have a £20k per annum allowance) and then when they are 18 you can give them as much or as little as you like. No need to have special accounts in their names if you think that they might blow it all within months.
if its equities then you might be missing the boat. FTSE up 0.8% this morning. Unless you are a trader on the floor then its never wise to try to time the markets.
https://www.thetimes.co.uk/money-mentor/article/interest-rates-rise/
The longer fixes will be interesting as a not a lot in a 2 year v 5 year fix with a lot of places, indicating they've already priced in a certain amount of increase in the up to 2 year fix.
Today will be interesting, many predicting a 0.5-0.75 increase. Some people with mortgage fixes coming to an end are going to be in a whole lot of pain. Here comes the crash!!
However, there is such a huge problem with housing stock availability that it may buck the trend this time around. I anticipate flat property prices over the next couple of years rather than any significant reset.