No rate change - buy to let mortgages

07 August 2009

As widely predicted by economists and other financial commentators, there was no interest rate change yesterday.

The Bank of England's monetary policy committee (MPC) opted to keep the base rate at 0.5 per cent - a record low.

It is now five months since the MPC last made any change to the cost of borrowing, having brought the rate down to its current level in March this year.

Keshav Thukaram, managing director of residential landlord services website Smartlandlord.co.uk, suggested that some people with buy to let mortgages "are having a cash ball" because of the 0.5 per cent rate.

However, he warned against complacency, saying that a change in fortunes for the economy could prompt a hike in interest rates.

"There are arguably indications that the economy has bottomed out, if the upward trend continues the Bank of England will increase the base rate before long and this will inevitably affect buy to let mortgages," he remarked.

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