Bank maintains base rate

The Bank of England has opted to maintain the base rate of interest at its current level of 5.75 per cent, it has been revealed.

Millions of credit consumers around the UK are struggling to become debt free and some had hoped that the bank’s monetary policy committee would cut the interest rate to ease their repayment pressures.

Interest rates have been at 5.75 per cent since July, but after five rises since August of last year many people are finding debt management increasingly difficult.

James Caldwell, director of the Fair Investment Company, said: “The Bank of England’s decision will be a blow for homeowners who are facing higher mortgage repayments as they come off fixed-rate deals which they secured when the market was more stable.”

“While one can see the logic in maintaining the status quo in such uncertain times, a rate cut would have been of great benefit to borrowers struggling to meet repayments and find affordable credit in the current climate of financial turmoil,” he added.

The Consumer Credit Counselling Service asserted earlier this year that homeowners around the UK would be “on the rack” financially throughout 2007.