Forecasts for mortage interest rates for next 5 years ?

Hello ,

Just wondering if there is any information out their on what the predicted mortgage interest rates will be in the next 5 years.

I looked on line but can't find anything.

I was watching Vincent Brown the one night and one of the commentators mentioned that mortgage defaulting will reach it's peak in 2016...so I am just wondering what are we expecting to pay over the course of the next few years.


Thanks in advance

Impossible to tell, the ECB have been very slow to increase rates for fear of stifling what little grow there is. Inflation is at 2.7% and had we not had a world recession, rates should be about 5% now (2.7% & rising, target is 2%).

If inflation stays around 3%, you could assume the ECB will want a base rate around 5%, meaning our own banks would be charging around 7-8%. If inflation rises further, the ECB will want its rate higher, so you can watch inflation to get an idea of were rates are heading.

No-one can tell you or even guess what will happen over the next 5 years, but its safe to say we'll get another .75% rise this year and maybe a 2% rise next year. I'm in a fixed rate at the moment until 2013 but i'm fully expecting to be paying around 8% when my fix rate ends.