Mortgage rate threat if hawk replaces Lomax

The prospects of further interest rate cuts this year to lower the cost of mortgages may be reduced if the next person appointed as Bank of England deputy governor is of a hawkish nature and keen to avoid interest rate cuts most of the time.

A vacancy for the post has arisen after it was revealed today that current deputy Rachel Lomax has decided not to seek a second term when her five-year period in office expires at the end of June.

This will mean that Ms Lomax will no longer be a member of the Bank's monetary policy committee.

If the next deputy governor is less disposed to rate cuts, this will dent the hopes of those hoping for cheaper mortgages.

This may make it a wise move for those wanting to own their own home to consider the self build option.

So far this year Ms Lomax is known to have voted with the majority in every decision, bar this month as the minutes revealing how the MPC voted will not be published until Wednesday May 21st.


© Adfero Ltd