Interest Rate Update to 17 November 2010

UK Interest Rate: 0.5%

UK Interest Rates Forecast: Low rates likely to continue

Low Mortgage Rates Help Cut Repossessions

Home repossessions in the third quarter of 2010 were down 27% on the same period last year, thanks in part to ongoing low mortgage interest rates that have kept mortgage payments low, according to the Council for Mortgage Lenders.

BoE Shows No Sign of Voting For Rate Rise

The minutes of the latest meeting of the Bank of England's Monetary Policy Committee have been published, showing that as in previous months, only one member of the committee voted for an increase in the base rate.

This suggests that it will be some time yet before the MPC votes for a rate rise, as a majority vote – five out of nine – would be required to make this happen.

New Mortgage Lenders Offer More Flexible Conditions

Bad credit mortgages – mortgages for people with the odd CCJ or missed loan payment on their credit history – were one of the first casualties of the credit crunch. That has made it difficult for many homeowners who qualified for mortgages in the past but now cannot find a remortgaging deal that they are eligible for.

The good news is that certain specialist lenders, who normally work through brokers, are now starting to offer mortgage loans to people with imperfect credit records. In other words, they are willing to look at borrowers as individuals and judge whether their finances are in good order now, even if they might have had slight problems in the past.

This can only be good news for the many British homeowners who are currently stuck with expensive mortgages that they cannot leave because they cannot find a suitable remortgaging deal.