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Relief over interest rate decision

The UK's population of homeowners will be breathing a collective sign of relief this afternoon after the monetary policy committee elected to hold the interest rate.

Deciding to maintain the base rate at 5.75 per cent, the Bank of England's policymakers have offered some respite for mortgage holders already feeling the strain from a series of rate hikes earlier this year.

The announcement was welcomed by the National Association of Estate Agents (NAEA), who urged the Bank to keep the interest rate at its current level "for the foreseeable future".

"We are pleased that a 'wait and see' strategy has been adopted by the monetary policy committee for the time being allowing consumers and the market a time to adjust and take stock," commented NAEA president Stewart Lilly.

Stephen Leonard, director of mortgages at Alliance & Leicester, said that the decision would be a "welcome relief" for homeowners.

"For borrowers needing financial security and the ability to budget for their outgoings, a fixed-rate mortgage will prove invaluable," he added.

Personal loans can help to ease the financial pressure of running a home.

See how much you could borrow with a home loan from Lombard Direct.

06/09/2007 17:22:20

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