Carney says interest rate increase is getting closer

By Lauren Burns

Mark Carney has said that an interest rate rise is "getting closer", though has again reassured mortgage borrowers that any increases will be "limited and gradual".

The Governor of the Bank of England said economic growth and an improved unemployment rate was beckoning an interest rate increase, and that to maintain the freeze at 0.5 per cent any longer than necessary could cause other risks to the financial system, including facilitating another property boom. At a conference on Thursday he advised that as yet there was no 'pre-set course' on interest rates, but reiterated once again that increases would be moderate, as Northern Ireland and the rest of the United Kingdom is still facing significant economic challenges.

It has largely been expected that the first rate increase will happen in early 2015, and mortgage borrowers are encouraged to educate themselves on how a rise would affect them. Any one who has taken out a mortgage since tighter lending criteria were introduced in April will have already been assessed by the lender in terms of their ability to cope with an interest rate increase.

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.