Mortgages

Mortgages

Bank of England Base Rate held at 0.5%

Mortgages, Savings

Bank of England Base Rate held at 0.5%

Although not much of a surprise the BoE Monetary Policy Committee has announced that rates will be held at the record low of 0.5%. The base rate has been held at 0.5% since March 2009 and the Bank has indicated that the rate will not rise until the unemployment rate falls below 7%.

Under the guidance of Mark Carney the Bank predicted that the unemployment rate would not fall below 7% until 2016 though, many experts feel that given the strength of UK’s economy this could happen in 2015. The June-to-August figures have the unemployment rate at 7.7%.

Good news for existing mortgage borrowers, especially those on low variable rates but continuing bad news for savers with money held on deposit.