The Bank of England’s Monetary Policy Committee (MPC) has voted unanimously to hold the Bank Rate at 0.75%.
In its latest forecast, the central bank cut its growth forecast for this year from 1.7% to 1.2%. It cited the slowdown in the global economy as well as uncertainty due to Brexit.
It expects the UK have has its weakest year since 2008.
Kevin Roberts, director of Legal & General Mortgage Club, said: “Given the ongoing political uncertainty, today’s decision to hold interest rates comes as no surprise. However, the fundamentals in the mortgage market remain strong. There is still plenty of support to help borrowers step onto and up the ladder, from new mortgage products for first-time buyers to the near record low interest rates we continue to see in the market.
“For borrowers who aren’t sure of what step they should take or who haven’t yet locked into a fixed rate mortgage, now is a good time to seek professional advice. An independent mortgage adviser can help borrowers to navigate all the different options on the market and find them a mortgage that is best suited for their circumstances, whether that be a two, five or even 10-year fix.”
Nick Chadbourne, chief executive of LMS, added: “Record low interest rates are encouraging borrowers to take advantage of the market and lock into longer, more affordable deals. LMS data is also showing a trend of remortgagers opting to take out five-year fixes as they come off of two-year deals, giving them greater certainty for longer.
“A stay in rate rises shouldn’t be taken for granted, however, and increasingly consumers are getting wise to this. Our research from January reveals that 60% of borrowers expect interest rates to increase within the next year.”