Interest rates remain frozen at 0.5 per cent

By Christine Farrell

As expected the Bank of England has continued the freeze on UK interest rates, remaining at 0.5 per cent for yet another month.

The monthly vote of the Monetary Policy Committee (MPC) used to be anticipated with some interest, but Mark Carney's forward guidance that linked an interest rate increase to a drop in unemployment has meant that the decision to maintain the rate freeze was always a certainty. And that will be the case well into next year, with analysts expecting the goal of a 7 per cent unemployment rate to happen by 2015 at the earliest. As such, mortgage borrowers anticipate with keener interest the regular reports on unemployment and inflation to best monitor the future of interest rates.

The continued rate freeze means homeowners throughout Northern Ireland and the UK still have a great opportunity to increase their equity share in their property by overpaying on their mortgage, while others will take advantage to move to a new mortgage product. For many people in Northern Ireland it is a case of climbing their way out of negative equity, a problem brought about by the sudden collapse of the property market after a large boom, which caused house values to drop by tens of thousands of pounds.

If you are remortgaging, buying or selling 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.

Or to read more information on property conveyancing in Northern Ireland click here.