UK interest rate predictions - base rate may not rise until 2016.
UK interest rate predictions from the UK Centre for Economics and Business Research indicate that the UK interest rate may stay at record low levels until perhaps 2016.
Interest rates were dramatically cut to the historic low of 0.5 per cent way back in 2009, as part of the BOE's effort to stimulate economic growth. With the country's economic recovery still a long way off, the CEBR say it will most likely be another four years before any likely interest rate rise.
If the CEBR UK interest rate predictions are proved right then it could mean lenders low mortgage rates may continue to be available, which is positive news for borrowers.
Those on tracker mortgage deals stand to benefit the most. Tracker mortgage rates are linked to the BOE base rate and while it stays low, tracker rates which are usually set at 1 or 2 per cent above, will also stay low.
However, the CEBR UK interest rate predictions are not completely positive news as the CEBR believes economic growth could remain low, meaning unemployment could rise up to around 3 million by the summer of 2013.
Anyone looking for a mortgage or remortgage deal should act now. At Deal Direct we are up to date on different mortgage providers lending criteria and latest deals, we are well placed to source a competitive great new deal for you.
