Interest rate freeze continues under new Governor

The meeting of the Monetary Policy Committee (MPC) was awaited with much interest as Mark Carney started his first day as Governor of the Bank of England with a vote on interest rates and quantitative easing.

And while there was much excitement about the new Governor, the result of the meeting was anything but new - interest rates remain frozen at 0.5 per cent and there has been no expansion to the quantitative easing program. Mr Carney also made a statement accompanying the MPC decision to allay fears that interest rates might increase next year. He said that City forecasts that interest rates might increase next year seemed premature.

The decision to maintain interest rates at 0.5 per cent was predictable, but welcome nonetheless by home owners throughout Northern Ireland and the rest of the UK. Figures on mortgage lending show that property owners are focusing on reducing their mortgage debt to increase their equity share in their property, and low interest rates are enabling them to do that. In Northern Ireland in particular, home owners are overpaying on their mortgage to try to get out of the negative equity problem that hit so many as a result of the drastic fall in house prices.

If you are remortgaging your home in Northern Ireland, or considering buying or selling a property, contact one of the conveyancing solicitors at Wilson Nesbitt in Belfast by calling 0800 840 9290.