Base rate freeze 'a relief for borrowers'

Mortgage borrowers could be breathing a collective sigh of relief following the Bank of England's recent decision to freeze interest rates at 5.25 per cent.
It had previously been speculated that the bank's monetary policy committee would vote for another base rate increase, following the surprise increase that took place last month.

Some commentators argue that the MPC is holding back on another base rate increase in order to assess the impact of the last increase.

However, concerns over consumer inflation could lead to further base rate increases in the coming months, as speculated by many experts.

"Having surprised financial markets and commentators by raising rates to a five-year high in January, it seems likely that the members of the MPC might have wanted to pause to see what effects their pre-emptive strike had," explained Barry Naisbitt of Abbey.

Though the base rate remains frozen for the time being some mortgage lenders have decided to increase fees on their fixed-rate deals, according to MoneyExpert.

Related Articles:
Take a year off mortgage payments with Nationwide competition
Dream home 'kept in mind by 60 per cent of Brits'
Property 'key goal for under 30s'
Most property buyers 'would look abroad to purchase'
Parents 'spend more time helping first-borns on ladder'