Borrowers advised to shop around as rate holds

The Bank of England Monetary Policy Committee (MPC) has voted to maintain the base rate at 4.5 per cent.

The move is in accordance with the forecasts of many experts who believe that more time is needed to assess the impact of recent economic developments, despite national inflation currently at 2.4 per cent.

Ray Boulger, of independent mortgage experts John Charcol, said in a statement: “Most economic statistics released over the last month continue to point to the next move being down, and soon, but another month will allow for a better assessment of the global economic effect of the two hurricanes.”

The outlook for borrowers is encouraging as lenders attempt to outdo each other with mortgage and loan deals.

“Homeowners who can afford to adopt a ‘wait and see’ approachÖare likely to be able to take advantage of even cheaper rates in a few months time,” he added.

Financial providers such as Alliance & Leicester are seeing a high demand for fixed rate loan products.

© Adfero Ltd

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