aerial view of houses
Media playback is unsupported on your device
Video

How will 'forward guidance' affect people with mortgages?

The new governor of the Bank of England, Mark Carney, is unveiling a new strategy of "forward guidance".

Under the strategy, the Bank will periodically promise to keep interest rates at a particular level, until certain economic conditions are met.

With short-term interest rates already at historic lows, the idea is to reduce longer-term interest rates and boost confidence.

Adrian Lowcock from investment company Hargreaves Lansdown told BBC Breakfast the move would offer people with mortgages a degree of greater certainty for the future.

Go to next video: Can borrowers cope with mortgage rise?