Re: UK interest rate predictions



Phil Scott wrote:
> <chandy@xxxxxxxxxxxxxx> wrote in message
> news:1117368406.419244.133890@xxxxxxxxxxxxxxxxxxxxxxxxxxxxxxx
> > Hi,
> >
> > I need to pick a mortgage and would be *extremely*
> interested to hear
> > anyone on here's views on UK interest rate predictions over
> the next 3
> > years. I currently have the options of a 3 year variable or
> a 3 year
> > fixed at the same rate as the variable is just now. Is the
> general
> > view that rates will drop .5% over the next three years as I
> feel or
> > not?
>
>
> rates will go high, very high...as the USD is being hyper
> inflated and other currencies are tending in that direction...
> why..because govt funds itself by printing money, a way to
> covertly tax the people... so the currency becomes worth less.
>

I think you might be exaggerating a little bit. According to the
official figures, inflation in the US is about 3.5%.That isn't whaqt
I'd call hyperinflation.


> its being held artificially low now to revive the dead... it
> cannot last.
>
> If the interest rate is held low as more money is printed and
> the currency is worth less and less (in the US by 10 to 15% a
> year, then you have inflation in excess of what a person can
> earn in interest or investment and investment ceases.
>
> With no investment an nations economy crashes... therefore
> interest rates must be above the actual inflation rate...
>
> I recommend you take the fixed... it cant go much lower than
> it is now, but it can go a hell of a lot higher and if you
> cant pay that payment you could loose the property.
>
>
> If it goes lower by a precent or so you can refinance.
>
> If it goes up you will not be able to refinance to a better
> rate.
>
>
> Phil Scott
>
>
>
>
> >
> > TIA,
> >
> > Chandy
> >

.

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