Economy boost means interest rates could go up in 2014

By Natasha Adamson

When Mark Carney attempted to bring some certainty to the future of interest rates earlier this year he advised that there would be no movement until the rate of unemployment fell to at least 7 per cent, and it was considered it would take around three years for that to be achieved.

Fast forward a few months and the UK economy is improving faster than imagined, with unemployment equally falling at a quicker rate. As such, analysts are no longer projecting that unemployment will hit Carney's 7 per cent target in 2016, with some now suggesting it could happen as early as next year. The Monetary Policy Committee things there is about a 40 per cent chance of unemployment falling to 7 per cent by the end of 2014, and others agree that it is more likely to happen in the first half of 2015.

Home owners and first time buyers will be taking note of the new forecasts as they decide on their best option for a mortgage - fixed or variable, and some people who had been holding off a remortgage to make the benefit of the rates freeze may feel that the time to make a switch is closer than they had originally thought.

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

 

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