Homeowners could breathe a huge sigh of relief, as the Bank of England recently declared that interest rates were unlikely to increase before 2017.
The members of the Monetary Policy Committee voted to retain the current rate of 0.5%, as it has been for the last six years. A spokesperson for the Bank of England said that very low inflation and concerns about the global economy would mean that an increase in rates was unlikely.
Earlier in 2015, the governor of the Bank of England, https://www.beaconfinancialtraining.co.uk/wp-content/uploads/2020/06/cemap-online-and-classroom-training-uk.jpg Carney, had warned homeowners to expect an increase in interest rates and mortgage costs. The quarterly inflation forecast published by the bank reveals that the growth outlook for next year would be reduced from 2.7% to 2.5%. The report also suggested that UK inflation would remain below 1% next year. This and other factors influenced the decision not to increase interest rates. Just one of the nine members of the MPC had voted for an increase in interest rates, to 0.75%.
In an open letter from the Bank of England governor to George Osborne, the chancellor, Carney states that inflation would stay below 1% until the last six months of 2016 and says:
“It is likely that I will have to write further open letters to you over the coming months.”
Although low mortgage rates are good news for borrowers, it is still crucial that checks are made to ensure the most suitable deal is selected. A qualified mortgage adviser can help, especially if they are CeMAP trained.