The Bank of England has today frozen the UK interest rate at 4.75 per cent.
The rate hold was expected by most industry pundits and has been welcomed. It is thought this is the peak of the base rate and we will see cuts next year as long as the global economy does not provoke otherwise.
Purely Mortgages chief executive Mark Chilton says: “It comes as no surprise that the MPC has elected to hold rates again this month. Increasingly the weight of opinion is that we have now seen the peak of this interest rate cycle and that next year will see an easing of interest rates. This definitely signals relief for homeowners any may ease the plight of first time buyersm by improving affordability again.”
“I believe that both the MPC and the Government are increasingly concerned about stagnation, rather than deflation in the housing market and with the lack of any help for first time buyers in the budget, the massive fall off in first time buyer activity needs to be reinvigorated to underpin the rest of the housing market.”