Interest rates

[themalster]

This is probably gonna sound really stupid but does anyone know roughly when interest rates will stop rising??!! My mortgage payment has now exceeded �1100 and my fiancee and i are struggling financially especially as we have a baby on the way. Surely the BoE cant keep raising the level. Thousands and thousands of honest hardworking people are being stretched to the limit because of this.

[Ethel]

Sadly they can - when I had a mortgage in the late 80s and early 90s the interest rate rose to over 15%. It was a very tough time with many repossessions.

Recent history proves that interest rates go in a boom and bust cycle.

The BofE are likely to rise it again next month. Good for me, not so good for you.

[Hawkwalk]

Some experts are predicting a high of 8% but no one can be sure at this point. I would suggest budgeting for that to see where that gets you.

[PrinceRainie]

City analysts envisage another rate increase of 0.25% before christmas. Then probably start to decrease next year now that the desired effect is starting to happen i.e inflation nearly in check and housing market slowing down