Tim Leonard, a personal finance expert at Nerdwallet, broke down why mortgage holders should be happy with the central bank’s announcement.
He explained: “The decision will be a relief for those who have a tracker mortgage or are sat on their lender’s standard variable rate, whose monthly repayments typically increase if the base rate rises.
“It was these borrowers who suffered the most as the Bank raised the base rate 14 times in a row from December 2021, as policymakers tried to bring inflation in the UK under control.
“However, with the last increase coming at the start of August, it is three months and counting where their mortgage rate should have held steady.”
According to the mortgage expert, some commentators are certain the base rate will not drop until the middle of next year.
Despite there being no hike to the base rate, those looking to see interest rates for fixed-rate mortgages come down will likely have longer to wait.
According to Rightmove, the largest increases over the last three months were on two-year fixed-rate mortgages at 60 percent LTV, where the average rate increased by 0.03 percent to 5.40 percent.
Nerdwallet’s personal finance expert warned of potential “disappointment” for those attempting to get onto the property ladder.
Mr Leonard added: “Average rates at a number of other loan-to-values across two and five-year fixed-rate mortgages continued to fall or remained unchanged.
“However, several commentators are now predicting that the pace of mortgage rate cuts may be about to slow, and these latest figures do little to suggest otherwise.”
