Last month the Bank’s Monetary Policy Committee (MPC) voted to increase rates by 0.25 per cent to 5.25 per cent, but this month they voted to keep rates on hold.
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However, observers believe that rates could reach 5.75 per cent later in the year, with some even predicting the Base Rate will hit 6 per cent.
Moneyfacts mortgage analyst Julia Harris, said: With a further rate rise still on the cards for 2007, those consumers on a tight budget will need to act quickly before more of the current best buy fixed rate deals vanish.”
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Nicholas Leeming, Director of propertyfinder.com commented on the MPCs decision to keep base rates the same: Homeowners will breathe a huge sigh of relief today. Mortgage rates are already up sharply over the last year and confidence in the outlook for house prices has begun to slip. We think enough has been done to slow the housing market and that a cooler picture will emerge over the coming months.
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