Homeowners watch unemployment rate drop

By Christine Farrell

It is for all intents and purposes a good news story - the rate of unemployment in the UK dropped between May and July from 7.8 per cent to 7.7 per cent. However, since the Bank of England decided to link an increase in interest rates to a fall in the rate of unemployment, not everyone is upbeat about more people returning to work.

Mark Carney, the governor of the Bank of England had sought to reassure home and business owners about interest rates when he said that they would not move until the rate of unemployment dropped to 7 per cent. At the time of the announcement he envisaged that it could take 3 years to reach that target, which would mean interest rates would continue frozen into 2016. However, recent economic reports are suggesting that the recovery is happening quicker than first forecast, and that the unemployment rate could reach 7 per cent well before 2016.

The drop in unemployment between July and August was the biggest since June 1997, and is another indicator that the economic recovery is gathering pace. For those with their eye on the interest rates, the only thing for certain is to take advantage of them while they can. Many people have been doing so for the duration of the 53 month freeze, with homeowners overpaying on their mortgage to increase their equity share. Others are locking themselves into favourable fixed rate deals before the increase comes around.

If you are purchasing, selling, or remortgaging a home in Northern Ireland and require a property solicitor to handle the conveyancing process for you, contact Wilson Nesbitt in Belfast by calling 0800 840 9290.