Base rate stays at 0.5%

The Monetary Policy Committee (MPC) of the Bank of England has voted to keep Britain’s base interest rate at 0.5 per cent for the eighth consecutive month.

In line with industry expectations, the MPC revealed today that it has also elected not to extend its £175 billion asset purchase programme, which is expected to reach completion in November.

Commenting on the announcement, Legal & General mortgages director Ben Thompson noted that tracker mortgages have grown in popularity in recent months and his organisation believes this will continue over the course of the year as borrowers anticipate low interest rates for a long time.

However, he warned consumers considering home loans of this type to be wary as the base rate will not remain at this record low forever.

“We expect the MPC to hold interest rates steady for some time but rises are inevitable, so borrowers must be prepared,” he remarked.

By Chris Trimble