UK interest rates to stay at record low

As expected, the Bank of England Monetary Policy Committee has announced that interest rates are to continue at their record low of 0.5% - originally set in March 2009.

There is to be no new quantitative easing measures, but this again was largely to be expected as the Bank had suggested that the October injection of £75billion would probably not be administered until February 2012.

The low interest rates continue to benefit existing home owners, many of whom are taking advantage by overpaying on their monthly mortgage payments so as to increase their equity share. For many first time buyers who bought in Northern Ireland at the height of the market, the chance to overpay on their remortgage each month is allowing them to work at getting out of negative equity after large property value declines throughout the region.

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