NI borrowers told interest rates not rising in 2014

By Michelle Rock

Danske Bank has attempted to ease concerns of Northern Ireland mortgage borrowers by suggested that interest rates would not increase in 2014 even if the unemployment rate hits the 7 per cent target set by Mark Carney.

Bank of England governor Mark Carney said last year that interest rates would not be increased until the rate of unemployment hit 7 per cent, and an improving economy means that could happen this year. Mortgage borrowers in Northern Ireland and the rest of the UK have been watching the monthly reports on unemployment with interest, and there is growing concern that an interest rate increase could arrive sooner than expected.

The chief economist at Danske Bank, Angela McGowan, has sought to allay concerns among Northern Ireland borrowers by predicting that interest rates will not go up until mid-2015, regardless of how quickly the rate of unemployment falls. Ms McGowan says the Government will prefer to keep interest rates low for the time being to bolster the current economic recovery and to encourage business investment. She does however encourage Northern Ireland mortgage borrowers to be mindful of a future increase in interest rates, with a 1 per cent increase increasing monthly mortgage payments in Northern Ireland on average by £50 a month.

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