Base Rate Remains the Same

Home owners who have Standard Variable Interest Rate mortgages and tracker rate loans were pleased to know that the base rate of interest for loans would remain unchanged for another month.

The news was officially announced after the monthly meeting of the Bank’s Monetary Policy Committee (MPC).

The decision to keep the base rate at the same low level was embraced by many financial specialists as they think the increase in the base rate would be unreasonable in the current economic environment.

Despite the fact that the inflation in the UK is 4.5% now, many economists believe that the base rate should not be raised as the maintenance of affordable loans for home owners must be a greater priority.

Since a large number of people find it downright painful to keep up with their home owner loan or mortgage repayments, the base rate should be kept the same to prevent a substantial increase in loan arrears and repossessions in the current economical situation.

John McNeill of Aegon said that he expected the Bank to keep the rate on hold in the nearest future, waiting for the Consumer Prices Index (CPI) to show a great fall next year.
 


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