Interest rates could drop to 0.1 per cent by end of year

By Lauren Burns

Mortgage borrowers in Northern Ireland and the rest of the UK could potentially see their monthly mortgage payments fall further by the end of the year.

The Monetary Policy Committee (MPC) of the Bank of England voted to maintain the 0.25 per cent interest rate, but the minutes of the meeting show that a majority of members are open to another rate cut before the end of the year. That would depend on how significantly the economy slows in the second half of the year. A number of economic commentators have suggested that the next adjustment could be a cut to a 0.1 per cent interest rate.

Not all mortgage borrowers instantly receive the benefit of an interest rate cut, and whether or not they do will depend on the type of mortgage product they have, and the response to any cut by their mortgage lender. Property owners were looking at the strong possibility of an interest rate rise this time last year, so many borrowers will be satisfied that their mortgage payments are remaining for the large part unchanged.

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