MPC votes 6-3 to hold rates

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The Bank of England’s Monetary Policy Committee (MPC) has chosen to maintain the Bank Rate at 5.25%

The MPC voted by a majority of 6–3 for the status quo, while three members preferred to increase Bank Rate by 0.25 percentage points, to 5.5%.

Ben Thompson, Deputy CEO, Mortgage Advice Bureau, said: “Today’s hold in interest rates is good news for those with mortgage deals expiring soon, and prospective buyers looking to get onto the property ladder. Another hold is likely a sign that the Bank of England has now concluded this cycle of interest rate hikes. But we mustn’t get complacent. This could very much change in the coming months based on how, and indeed if, inflation continues to fall.

“The mortgage market has already seen drops in the swap rates used to calculate mortgage prices, and there is hope that a second consecutive pause might mean more reductions ahead for homeowners. Prospective buyers and mortgage customers will be relieved by the prospect of a steady rate, and hopefully not too distant reductions in the base rate.

“While there is hope that rates won’t rise again, there is a small chance they will, and action now could be more beneficial in the long run. This could be the sign for many homebuyers to take advantage of stable rates before there are further rises.”

Jeremy Leaf, north London estate agent and a former RICS residential chairman, added: “Extending the pause in the onslaught of successive rate increases is good news for the property market. In present troubled economic times, stability aids confidence, which is so vital to decision-making when it comes to buying and selling property.

“In our offices, we are finding that many people who want to move are holding off until they see mortgage rates and inflation come down further, with little prospect of further rises.”

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