With inflation on the rise some commentators had been predicting a rise. However, the BoE’s Monetary Policy Committee (MPC) voted unanimously to keep the rate where it stood.
Steve Seal, CEO, Bluestone Mortgages, welcomed the news.
He said: “Today’s announcement comes as welcome news to both prospective and existing borrowers. With general uncertainty surrounding employment since the pandemic, and government support schemes soon coming to an end, this is putting increased strain on people’s finances.
“These low interest rates will give borrowers the extra boost they need to get onto or move up the property ladder.
“Looking ahead, the challenge will be how we can support the growing number of customers who are left worse off by the pandemic, many of whom will be rejected by high street lenders. It is our role as specialist lenders to cater to these customers’ unique needs and direct them to the best available options.”
Kevin Roberts, director of Legal & General Mortgage Club, added that despite the speculation of a rise there was little real chance of it happening.
He said: “Today’s decision to keep the base rate at a low level will not surprise most as it is likely an attempt to limit the rising cost of living and ensure that the borrowing climate remains affordable.
“However, while today’s decision is welcome news for both future buyers and existing homeowners, other housing costs, particularly energy prices, are rising.
“Anyone worried about growing housing costs should seek the guidance of an independent, experienced mortgage adviser to help them to use the ongoing rates war to their advantage by reducing their monthly repayments. Though the cost of living is rising borrowing remains very affordable, making now a fantastic time to refinance and make savings.”
