First time buyer do you think interest rates are going to rise and any advice for saving?

I am in the new yeat going to get finances in order and start saving for a mortgage. Has anyone any advice of how i can save better, no silly answers pls, im looking from the experiences of ither first time buyers, those in the same situation. ThanksFirst time buyer do you think interest rates are going to rise and any advice for saving?
There's talkng of rates falling soon to keep the market going.





However, there's a chance the tories may be in within the next couple of years and under their disasterous terms interest rates went into double figures so who knows.





Its a gamble. I alsways believe it you can only just pay your mortgage, get fixed rate, else if you can comfortably afford it, get variable as its slightly cheaper but with more risk.First time buyer do you think interest rates are going to rise and any advice for saving?
no one ever knows what is going to happen. buy as someone in the same position i am well informed by my grandad (a retired bank manager) that it is likely that interest rates will either stay where they are or fall slightly in the next few months.





As for saving, there are some quite good saving accounts out there. just have a look around at the different banks and enquire what the best rate of interest you can get is. it is a fairly good time to be saving money so can get some quite good deals.





Good luck
Hello and thank you for your question !


Well it is wise to buy what you can afford and plan well.


In the UK houses are RIDICULOUSLY expensive.


There is no reason for the value to go up, if it does it will be because the interest rates are cut to avoid recession and the pound falls a lot. (typical Labour party hangover cure).


It is a good way to protect us all from bancruptcy, if the TORIES win then they stick by the strong pound, interest rates do not fall, inflation is controlled, then people go bancrupt (also known as negative equity as in their last time in office).


Either way, value of your house (in Euros) is less.


But you will have a heck of a lot of debt for a pathetically small house in a rough neighbourhood (or a garage in Chelsea).


Answer, rent in UK, or live in a hotel, buy nice, big, detached, homely home in Europe, commute to work in UK or work as a consultant, just be sure to give your kids a great education (easy in France for small cash or free in state schools).


Don't have to abandon ship and jump off UK just plan for long term. UK is very uncompetitive now (high costs and low productivity) so the pound is falling.


If you save, save in an appreciating currency, rg. Euros as they are rising against the pound (since everything is cheaper in France and Germany). Then if you get 5% interest and 10% appreciation you make 15% per annum and your bank will have less chance of failing than a British Bank aka. Northern Rock but most UK banks are not guaranteed by the government. If you must save in UK then National Savings is the most secure (100% government guaranteed).


Just watch out incase they sell your details on the internet.


Happy saving !
best thing to do is pay a little extra every time, it will pay of in the long run


also if your employer offers any retirement benefits take full advantage of them, many will match all or part of your own contribution %26amp; is easier to have it deducted from your pay check you eventually won't miss it at all


if you start young you can be a millionaire by the time you are 40-50
Hi,I do not think they will rise.Only you never know.To save cut down on what you spend %26amp; bank it.Good Luck
If you are saving for a home congratulations! First you need to realize there are several programs out there for first time home buyer. Check them out, and depending on your income you may be eligible for mortgage assistance.


Secondly, if you are currently renting you may want to find the most economical place to rent (Yes even if it is little and cramped) this will give you more to put down on your home.


Here are great websites to check out:


http://www.fanniemae.com/aboutfm/index.j鈥?/a>
There should not be any question about interest rises or falls , u should develop habit of savings. It would be best for u to consult several financial institute regarding their saving schemes . That will give u an idea where and how to start saving scheme.
Yes lots of experience.





I think interest rates will rise and houses will become lower in price because of this so you are doing the right thing by savng at the moment.





the trick is to try to buy low and hopefully when the trend of interest rates go down.





If you buy to soon and you don't have enough of a lee way


in finance you may loose your home to rising interest rates and the inability to pay them back.





Buy well within your range of payback. Don't be fooled into buying bigger and better.





Saving is hard at times but simply by adding to it each week is great. We found we made a barometer money chart and charted our progress to get our deposit. It was a visual reminder to how well we were doing.





We took on secondry jobs to save and at times would joke oh theres another door handle. Be warned though you can only take on a second job for a certain time as it will really stuff you up if you do it to long. For us it was so exciting to go into our own home we designed and picked all the accessories for. Our parents who live in a government subsidised home would never think of buying and thought we were mad to do this.





BUT we later heard they had bought their friends over to see our home as it was being built to show it off.





Now our home is worth a tremendous amount more with the property values going mad. This is good for us to either


borrow against it for other items, sell and upgrade, invest in an investment property for retirement.





We think property is better than investment. There has been too many firms go under and taking lots of poor peoples money with them.





hope this helps J
Well,


I'm a mortgage broker so I can tell you that if you want to you can buy without a deposit with some lenders, (including Northern Rock). You can also borrow enough to cover things like solicitors and stamp duty, (all subject to your credit score etc of course)


The question should be WHY buy now?


Property prices will be falling for a few years. A 拢100,000 property will only cost 拢75,000 in around 3 years time, (my prediction, make a note of my email and tell me if I'm right or wrong in a few years time).


You will hear a lot of conflicting views on this, but remember that most people who talk the market up have vested interests; estate agents, builders, property fund investors etc.


History repeats itself time and again.
Well, interest rates have fallen steadily for the past several months. This is mostly in response to the broken housing market. The Fed is trying to get people to be able to finance to buy a home and the only way they can help is by lowering interest rates. They have gone down .75 percentage points in the last two months and speculators are projecting another .25 rate cut at the Dec. 11 Federal Reserve Bank meeting.





I am currently buying and it is the best time to buy. The market is suppose to cool down over the next two years, so if you save up now you have a shot. Although you dont need the pure 20% down payment to make a mortage work, you will end up paying alot for whats known as private mortage insurance (PMI). Its around 50-80 dollars a month that you lose until you have invested over 20% in the property. If you have no money saved up now, it is going to be difficult to get that kind of money for a house quickly. For a $200000 house, you need about $40000 for the down payment, plus about another $10000 for closing costs, inspectors, etc. It costs a lot of money, but will end up saving you a lot in the long run too.
No magic answers, but lenders are going to be looking for borrowers with solid credit histories and at least 10% cash to put down. So whatever you can do toward those goals will help.


Chances are that housing prices still have some declining to do before they hit a bottom; mortgage interest rates may also slip a bit more (no one really knows), so you probably have some time to go before an optimal purchase moment.
For the next 3 months, I predict the Fed will lower rates 1/4% because they hinted at it.





For the rest of 2008, I predict the rates will not rise because the subprime financing and housing market decline will linger throught 2008. Sometime in 2009. the housing prices will start going up and soon after so will the interest rates.





For several years, the Fed has protected the markets by lowering rates after bad events, but not upping the rates back to normal during good times. This cannot go on forever as eventually they will be down to 0%. I am sure they are aware of this and therefore they will be looking for their opportunities to raise interest rates in the future.





Good ways to save every month are in money market funds shopped competitively over the internet. Go to www.bankrate.com and find the highest paying money market rate with a bank you can trust. You will not need a bank next door. Send them an initial amount by check or wire to open the account. Ask your company's HR department for another direct deposit form. Include a set amount to be sent to your new account with every paycheck and the balance to your current checking account. You can always add more by wiring or mailing deposits.
The depression is lurking its heas. Intererst rates are likely to fall.a litt5le. The mortgage ratyes are good at present. There is competition. So try to moirtgage for the shortest possible term if it is absolutely essential only. The savings rates in some good banks is attractive...
I do believe interest rates will rise under a labor government. this can be seen from two angles. If u look at the past u see that every labor government had ridiculously high interest rates and relied on liberal to bring them down. Also, as we have seen the government has no direct influence on interest rates. HOWEVER it is known that inflation is a major factor in interest rate hikes. it is also known that inflation is at a premium whenever labor hits the stage.


In regards to saving, the best method I have found is that a little bit frequently soon adds up. Put away a little bit of money daily or weekly and it will soon build up.


It also helps to cut back on some luxuries and remember that you are saving for something special, your first home.
The best savings vehicle for you will be a risk free, tax free option as you can't risk not having the money for the deposit - best to look for a high rate mini-cash ISA. You have an allowance of 拢3000 that you can pay into an ISA before 5 April 2008 ( end of tax year) and a further 拢3600 that you can save between 6th April 2008 and 5th April 2009. The allowance is rising next tax year.


If once you have used up your full mini-cash ISA allowance you still have free cash to save you should look for a simple high interest cash deposit account.


It is possible to save over the longet term into mini-stocks and shares ISAs tax-free or maxi-ISAs but as your deposit short term savings need you require security on your money so this is the way to go.





you can compare mini-cash isa rates on www.moneysupermarket.com