The Bank of England base rate has been kept at 5.25 per cent, the monetary policy committee (MPC) has revealed.

Commenting on the announcement, the Royal Institute of Chartered Surveyors has stated the decision is "appropriate" for the current economic climate.

Mark Blackwell, director of intermediary sales at Alliance & Leicester, echoed these sentiments, explaining there seems to be limited room to manoeuvre with base rates this year.

He advised property owners to purchase fixed-rate mortgage products during 2008, explaining that there is a chance that interest rates may creep up next year.

"Borrowers need to think carefully about the down side of locking into variable rates as the economic environment can change quickly and the MPC could raise rates in the future, he said.

By opting for a fixed-rate product, landlords, first-time buyers and homeowners coming off other fixed products can enjoy a certain level of assurance, Mr Blackwell concluded.

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