Mortgage holders see base rate frozen at 0.5%

09 October 2009

Written by Jeni Browne

Landlords with buy to let mortgages who have various fees to pay on a regular basis will have been among a number of homeowners to welcome the decision by the Bank of England's monetary policy committee (MPC) to freeze interest rates at 0.5 per cent.

It is the sixth month in succession that the base rate has remained the same after the MPC brought the cost of borrowing down to its current record low level.

A number of property industry experts and UK-based economists have suggested that the interest rate will stay at 0.5 per cent well into next year.

Benjamin Williamson, economist at the Centre for Economic and Business Research, recently claimed that it is unlikely there will be any change during the whole of 2010.

This is "partly to counteract the expected sharp fiscal contraction, but also because the recovery does remain weak, so they have got to keep borrowing costs down", he remarked.

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