The Bank of England monetary policy committee (MPC) has decided to maintain the base rate of interest at 5.75 per cent.
For those that are currently need of debt advice the news of a freeze in the cost of borrowing will be well received, while the MPC decision was also welcomed by ifs School of Finance as “good news for homeowners”.
“The Bank of England decision to hold rates is good news for homeowners following five rate rises in the last 13 months,” said Mark Roberts, head of financial regulation at ifs School of Finance.
David Kuo, head of personal finance at Fool.co.uk, has suggested that those looking to clear debt could take advantage of the interest rate freeze, offering that they should “take active steps now by overpaying their loans today”.
Alliance and Leicester also implied that those who are not debt free will welcome the news, claiming that the decision will be a “welcome relief” to the nation’s borrowers.