Interest rate freeze continues

By Michelle Rock

As expected the Bank of England's Monetary Policy Committee has voted to leave interest rates unchanged at 0.5 per cent for another month.

While the predictions on when interest rates might increase are getting increasingly earlier in light of the economic recovery, there are few who expect any change in the coming months. When Mark Carney made his forward guidance policy last year linking interest rates to the rate of unemployment it was predicted that an increase wouldn't happen until 2016. However, with the number of unemployed falling fast, and the economy on the whole recovering well, speculation is now as to whether the rate freeze will continue through to the second half of this year.

Mortgage borrowers and property purchasers have been able to take advantage of low interest rates for sometime now. However, buyers and remortgages are being advised not to over-stretch themselves when considering their mortgage commitment as a future increase in the rate of interest can have a significant impact of the monthly mortgage payments they will have to make. Anyone applying for a mortgage in the near future is being advised to factor in their capacity to deal with an increase in the monthly rate by the end of the year.

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