Base rate uncertainty 'confusing mortgage customers'

Not knowing how the Bank of England's monetary policy committee (MPC) will move on interest rate policy in the coming months is causing many homeowners to remain uncertain about what remortgage would be best for them, it has been stated.

The Abbey Remortgage Index for July revealed that 41 per cent of householders would find it difficult to decide whether to go for a fixed or tracker deal if they were planning to remortgage now, compared with 30 per cent in June.

Director of Abbey Mortgages Phil Cliff said this uncertainty is a direct consequence of the difficult decisions faced by the MPC.

He commented: "The current uncertainty surrounding base rate decisions and the general uncertainties on the market at the moment are clearly feeding through into consumers views on mortgages."

Predicting this week that the MPC will vote to keep the base rate at five per cent tomorrow, UK economist at Capital Economics Paul Dales said that this option is currently "the easiest thing to do".