Thursday, June 09, 2011

Interest rates remain Low

The news that interest rates have remained at 0.5% is a big relief. I often wonder how long they can keep them this low after 27 months of doing so. there is increasing pressure from savers to put it up but with the economy not recovering as well as they had hoped there are now even predictions that rather than being put up in August, as was once predicted, they might not go up until March. This may depend on inflation though as this is rising faster than hoped and raising interest rates would slow this. With a tracker mortgage at 0.46 + the base rate I am still doing extremely well at the moment. i am concerned that I have not put enough money by, so when the rates start to creep up, I will not be able to pay back what I owe fast enough to have taken full advantage of the long low rate period. I am considering whether doing a loft conversion sooner rather than later is a good idea. But with a husband not fully happy in his job, it may put too much pressure on him to stay in a position that he is not happy with. Still more thinking to be done here I think.

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