No mortgage rate cut as MPC holds rate

Those hoping for a cut in mortgage interest rates were disappointed today as the Bank of England's monetary policy committee (MPC) revealed it had voted to hold the base rate at five per cent.

Following last month's cut, a second successive change would have been unusual, not having happened since the rate rises of May and June 2004 and the decision was widely expected.

Among those predicting a hold were all nine experts who spoke to Adfero, while just five out of 65 economists interviewed by Reuters had tipped a cut.

The MPC may have been influenced in its decision by the findings of the latest quarterly inflation report, which the Bank will publish on May 14th.

Would-be first-time buyers looking to get on the housing ladder may decide to consider the self build option rather than hoping for mortgages to become cheaper soon.


© Adfero Ltd