The Governor of the Bank of England, Sir Mervyn King, has stated that a hike in home repossessions is not likely as UK interest rates are likely to stay low.
Repossessions have decreased recently and multiple experts have gone on record to say that many homeowners have been saved from repossession due to the low interest rates, which have pushed down monthly mortgage repayments .
Sir Mervyn, at the Treasury Select Committee, repeated that interest rates are going to stay at the present historic low of 0.5% for a while as economic recovery is still slow.
New figures show that the UK economy expanded by 0.5% between January and March; this slow recovery means the Bank of England is going to maintain low rates in order to stimulate the economy.
Interest rates have been at record lows since March 2009, when the UK economy was experiencing the depths of recession .
Sir Mervyn said: "The reason we would raise interest rates would be in the context of a much stronger economy with unemployment falling rather than rising."
In April, the Council of Mortgage Lenders predicted that 40,000 homes would be repossessed during 2011.
To Avoid Further Repossessions Bank of England Confirms Interest Rates will Stay Low
Fri, 01 Jul 2011
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