Mortgage customers can expect interest rates to remain on hold for a long time to come, it has been predicted.
According to What Mortgage, it is “increasingly likely” that the Bank of England’s Monetary Policy Committee will keep the base rate at its record low for an extended period of time.
A recent Chartered Institute for Securities and Investment survey revealed that more than half (51 per cent) of financial services practitioners expect the Bank of England to keep UK interest rates at their current level of 0.5 per cent for at least another year.
What Mortgage editor Ben Wilkie said: “Obviously no-one knows for certain and different economic factors could come into play, but it is looking increasingly likely that interest
rates are going to stay very low for a long time.”
The expert predicted that the UK’s interest rates could follow a similar path to those seen in the US.
Americans are set to enjoy almost zero per cent interest for some time, while there are similar situations developing in the eurozone, Mr Wilkie added.