The Bank of England’s monetary policy committee has voted to keep interest rates on hold at 0.75 per cent.
Most economist and housing analysts were not predicting any rise, following the decision to raise interest rates by 0.25 per cent in July.
Santander chief economist Frances Haque says: “The decision to hold rates was widely expected despite the more positive outlook for economic growth.
“Although inflation remains above the 2 per cent level and wage growth has tipped 3 per cent, the MPC looks to have remained cautious in its approach, wanting to wait until the outcome on Brexit is known before raising rates further.”
He added that he would not expect to MPC to raise rates again until after March 2019, assuming a Brexit deal is struck.
Legal & General Mortgage Club director Kevin Roberts adds:“A hold in the base rate is no doubt welcome news for borrowers.
“Mortgage rates continue to remain at near-record lows and there is also a growing number of innovative solutions for first-time buyers and retirees alike available on the market.”
Trussle mortgage expert Dilpreet Bhagrath adds: “Avoiding another rate rise is undoubtedly good news for home owners on variable rate mortgage deals.
“We’re still in a period of very low mortgage rates, so borrowers should check whether they could save money by switching to one of the more competitive deals on the market.”