Interest rates stay at 0.75 per cent

Mortgage borrowers and home purchasers in Northern Ireland and the rest of the UK will be happy with the recent Bank of England decision to maintain interest rates at 0.75%.

Moreover the Monetary Policy Committee (MPC), the nine-member body responsible for interest rate voting, were unanimous in their decision to keep the rate on hold, meaning that an increase in the near future is rather unlikely.

According to the Bank of England’s website, the purpose of the MPC is to set monetary policy to meet the 2% inflation target, in order to help sustain growth and employment. Despite the political and economic uncertainty surrounding Brexit, the MPC pledges to always act to achieve the 2% inflation target.

Mortgage borrowers will be pleased to see the interest rate hold steady, especially those on variable rate mortgages where the amount of each payment is dependant on the Bank of England base rate. That the decision to maintain the rate was unanimous is also good news for existing variable rate mortgage borrowers, as well as new mortgage borrowers and those wishing to remortgage, as it suggests that an increase isn’t on the immediate horizon.

Still, it never hurts to be financially prepared for a rate increase. Many homeowners in Northern Ireland report that any increase in their mortgage payments could cause them real financial difficulty, so being able to arrange a small financial buffer to absorb any rate increase would certainly be beneficial to many homeowners. 

If you are buying a home, or selling or remortgaging your existing property and require a property conveyancing solicitor to handle the legal process for you contact Wilson Nesbitt in Belfast or Bangor by clicking here.