There were few surprises when the Bank of England held the base rate at 5.25% for the fourth month.

The BoE’s Monetary Policy Committee voted to hold rates at their September level, after raising the base rate 14 times from its 0.1% historic low in December 2021.

Commenting on the MPC’s decision Market Financial Solution chief executive Paresh Raja, says: “It’s almost two years to the day since the Bank of England began its rate hiking cycle, but today’s decision to maintain rates for a third consecutive time is as sure an indicator as any that it has now peaked. It remains very hard to predict where the base rate will sit in six or 12 months’ time.

“For now, though, the property market can only benefit from it holding flat – buyers can adapt to the higher rate environment, with the stability allowing them to properly assess how much they can or want to borrow.

“The house price indices are showing green shoots of recovery, meaning property investors can head into the festive period with a cautious sense of optimism – even if a rate cut won’t be under their Christmas tree this year, many expect the base rate to fall next year. However, as always, lenders and brokers must stay on the ball, offering flexibility and certainty in the here and now to help people invest in the property market with confidence in 2024.”

M Powered Mortgages sales director Matt Surridge says the market continues to benefit from increased stability across the board, reflected in a much more stable base rate from the Bank of England. However, it is important that borrowers and brokers are not unrealistic about what to expect over the coming year.

“Mortgage rates are likely to remain elevated over the next 12 months, and the impact of the cost-of-living crisis will mean many individuals are dealing with significant financial pressures on a daily basis.

“UK Finance data shows that 900,000 borrowers will experience ‘severe mortgage rate shock’ in 2024 when their existing fixed rate deals come to an end with monthly payments set to rise by more than £1,000 for some. This is worrying, which is why we believe rates need to come down at a much faster pace than is currently forecast”.

Shojin chief executive Jatin Ondhia believes the Bank of England is walking a tightrope. “Understandably, it is unwilling to loosen its grip on inflation by dropping rates any time soon. But it also has to be careful not to inflict excessive damage on the UK’s contracting economy. It’s an unenvious task, but we should welcome the fact that the base rate is likely to hold at 5.25% in the short-to-medium-term – it means people can finally make financial plans with a degree of certainty, and the timing couldn’t be better.