This is the seventh month in a row that rates have remained unchanged.
Ray Boulger of mortgage broker John Charcol, comments: “The Bank’s view of the likely strength of the UK economy over the next few months is significantly more bullish than that of most outside economists and it appears the MPC will wait for further evidence of a slowdown before sanctioning a rate cut. However, we firmly believe this is a question of when, not if.”
Boulger says that competition among lenders is strong and there are plenty of good value fixed rates available to borrowers.
He says that the cost of fixed rate mortgage will fall if we do get a reduction in base rate. “I expect to see even cheaper fixed rates over the next few months. For those borrowers who don’t need or want the payment rate certainty offered by a fixed or capped rate, a tracker mortgage with a drop-lock option remains an attractive option.”
Drop-locks allow the borrower to fix their mortgage at a time of their choosing.
