The Bank of England’s Monetary Policy Committee (MPC) has voted to hold the base rate at the 15-year high of 5.25 per cent.
Rate-setters hiked the bank rate 14 consecutive times in less than two years, but have been maintaining it at the current level in recent months, which it reached in August this year.
What does Bank of England decision mean for mortgage rates?
Steve Seal, CEO, Bluestone Mortgages, said the decision to leave rates untouched would be “welcomed by would-be and existing borrowers, who have felt the brunt of 14 rate rises one less than two years”.
He added: “While this decision could indicate that rate rises have reached their peak, affordability remains a key concern as the cost of living crisis continues to squeeze the nation’s finances.
“For those worried about how they can climb onto or up the property ladder amid this challenging environment, rest assured that there is help at hand.
“Whether that be opting for a product transfer, asking for a payment holiday or being signposted to specialist support, the earlier they engage, the sooner they will receive the tailored support to help make their homeownership dream a reality.”
Karen Noye, mortgage expert at Quilter, explained the “picture is mixed” for people with mortgages.
She said: “Borrowers on variable-rate mortgages gain a reprieve from immediate payment increases, which could encourage spending and economic activity.
“However, those looking to remortgage or secure new mortgages may still face relatively high rates and stringent lending criteria.
“Lenders however are likely to remain competitive, which could lead to more favourable rates for borrowers over time.”
The Bank of England increased interest rates in an attempt to ease inflation, which reached a peak of 11 per cent in 2022.
Inflation hit its lowest level in two years, according to statistics published by the Office for National Statistics, last month.
The data showed the Consumer Prices Index (CPI) rose by 4.6 per cent in the 12 months to October 2023, down from 6.7 per cent in September.
The ONS will publish the CPI inflation data for the year to November 2023 on Wednesday morning.
