The Bank of England’s governor says slow economic growth is a greater concern than rising prices.
The governor of the Bank of England Governor, Mervyn King, has said he is more concerned about the strength of the recovery than inflation.
His comments, made during an appearance in front of the House of Commons’ Treasury Select Committee, suggest he believes interest rates should stay low for the foreseeable future. Stuart Marshall from Liquid Expat Mortgages suggests that with several tracker mortgages available to expats starting at 2.39% above Base Rate with low arrangement fees of £500, this is positive news to expats whom are either looking to get back on the UK property ladder or purchase a second home.
Mr King said he could not be confident that growth was firmly established.
Latest figures show the UK economy grew by 1.1% in the second quarter.
The gross domestic product (GDP) figures were stronger than had been expected.
But Mr King said there was no pressing need to rein in rising growth or curb inflation. He said: “The debate is about the appropriate degree of stimulus, not about applying brakes.”
The latest minutes from the Bank’s Monetary Policy Committee (MPC), which sets interest rates, showed one member out of eight voted to raise rates from their current level of 0.5% to curb inflation. With fixed rate mortgages available to expats for buy to let and main residential mortgages starting at 4.2% plus, this may place low rate tracker mortgages in a new light.
The central bank governor’s comments were in harmony with a report from the National Institute for Economic and Social Research (NIESR).
For more information available on UK mortgages for expats, please contact Stuart Marshall, Business Development Director of www.liquidexpatmortgages.com or email stuart@liquidexpatmortgages.com