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NewsTracker mortgage holders 'unlikely to see base rate rise this year'
Tracker mortgage holders 'unlikely to see base rate rise this year'
Posted by Mark Cunningham
People considering purchasing a house with a tracker mortgage deal are likely to benefit from low repayment charges for the remainder of 2011, an expert has suggested.
Last week (May 5th), the Bank of England's Monetary Policy Committee voted to maintain the UK's interest rates at 0.5 per cent for the 26th month in succession, after deciding that the country's economic recovery is not yet strong enough to cope with a rate hike.
And Ed Stansfield, chief property economist at Capital Economics, believes this trend is likely to continue until 2012, which could represent good news for tracker mortgage holders in the wake of the worldwide monetary slump.
Mr Stansfield explained that factors such as the "fiscal squeeze" caused by the government's spending cuts will persuade policymakers to keep the figure at its current level for the foreseeable future.
This comes after research conducted by Lloyds TSB showed that 32 per cent of all Britons feel that the rate will go up at some point this summer.
09/05/2011 15:11
News category: Property