Record low interest rates continue

The latest Bank of England Monetary Policy Committee (MPC) meeting resulted in continued good news for home owners and first time buyers, as it was announced that interest rates will continue at their record low rate of 0.5% - the level first set back in March 2009.

 

There was no real expectancy of an increase to the base interest rate this month, and none is predicted for the near future as the UK economy is widely considered to be at risk of double dipping into recession. The Bank announced a further injection of £50billion into the quantitative easing (QE) programme, bringing the total stimulus package to £325billion to date.

Mortgage borrowers throughout Northern Ireland and the rest of the UK have taken advantage of the low interest rates to overpay on their monthly mortgage payments and thereby reduce the overall debt. A recent report suggested that people in the UK were now shunning debt in favour of repayment, with a significant number of people also choosing to overpay on their secured loans and shunning new debts and credit card use. First time buyers will also take some comfort from the continued low interest rates, though with March bringing an end to the stamp duty relief on a first time house purchase, there is still a substantial financial hurdle facing those hoping to get a foot on the property ladder.

If you are planning to purchase, sell or remortgage a property in Northern Ireland, and need a conveyancing solicitor to handle the legal transaction for you, contact Wilson Nesbitt solicitors in Belfast by calling 0800 840 9290.

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