The Bank of England has announced today that the base rate has been held at 0.75%.
This marks the tenth month in a row that the rate has remained the same, though the industry was caught by surprise at the news that two of the nine votes were against keeping the rate level. This suggests that a move in the base rate may be in the not too distant future. In September the decision to keep the rate at 0.75% was unanimous.
Thanks to the vote being split, there is now talk that the base rate may go down in the not too distant future.
Alex Maddox, capital markets and digital director at Kensington Mortgages, said: “In the current environment, it would have been a very hawkish move to cut rates.
“It now looks increasingly likely that a rate cut may happen in the new year to support the economy if Brexit is delayed again and this impacts businesses and investment.”
Once again this is good news for borrowers. As lenders continue to promote low rates on their fixed rate and tracker rate deals, more and more people are choosing to remortgage and tie themselves in for longer.
For First Time Buyers and home movers, the news shows that now is still a good time to buy. Although rates may go down in the future, many people are looking at taking advantage of rates now in case the suggested drop doesn’t materialise.
