Twitter Facebook RSS FEEDS

Interest rates stay at 5%

Thursday, 7 December 2006 12:00 AM

The Bank of England voted to keep interest rates at five per cent today, following a rise of 0.25 percentage points last month.

The decision to keep base rate the same was widely expected by property insiders, with the latest indications showing the inflation figures the Bank of England's Monetary Policy Committee (MPC) use to set interest rates remaining on target.

"As expected, the Bank of England has maintained interest rates at five per cent even though the UK economy has been very buoyant, with strong activity particularly evident in the housing market despite the recent rate rises," commented Mehrdad Yousefi, head of intermediary mortgages at Alliance & Leicester.

He added: "Most commentators still believe there is a likelihood of an interest rate rise sometime in early 2007.

"However, the sharp fall in the US dollar and the unexpected downturn in manufacturing statistics have probably been responsible for no movement in rates this month."

Independent mortgage adviser John Charcol echoed Alliance & Leicester in noting the pound's rise against the dollar as a factor in keeping interest rates at their current level.

However, John Charcol does not believe rates are likely to rise in early 2007.

Ray Boulger of John Charcol said the MPC would be unlikely to need to raise interest rates in the foreseeable future.

"The MPC will be prepared to wait some months to see the impact of the two recent Bank rate rises before seriously considering another increase," Mr Boulger explained.

Related stories

Don't get caught out by mortgage rate rises. Image:Thinkstock

Mayday for mortgages as interest rates rise

Hikes could cost home owners hundreds of pounds a year more, says MoneySupermarket.com.

Row of houses

Homeowners remortgage to beat interest rates

With the Bank of England poised to push up the cost of borrowing, could now be a good time to remortgage the house?
The three year anniversary of the 0.5 per cent interest rate is coming up.

Winners and losers from record low interest rates

Survey by Moneysupermarket.com finds a quarter of mortgage borrowers feel better off three years after rate cut.

 Interest rates were held at 5.75% today

Interest rates stay at 5.75%

Interest rates stay at 5.75%
Interest rates stay at 5.75% in August

Interest rates stay at 5.75%

Interest rates stay at 5.75%

 The Bank of England voted to hold interest rates at 5.25%

Interest rates stay at 5.25%

Interest rates stay at 5.25%
Bath Crescent

Low interest rates leading to investor confidence

New research suggests that Britain's low interest rates are driving demand for investment properties.

 Bank of England

Interest rates expected to rise by June 2011

Higher interest rates could inspire mixed reactions, with mortgage-holders expressing dismay but savers feeling pleased.
Savings or mortgage repayments?

Mortgage-holders at risk from rising interest rates

More than seven million mortgage customers could struggle if interest rates were raised, the Bank of England has warned.

 UK residential properties

Variable interest rates could jump 600% by 2012

Mortgage customers with floating interest rates could soon be paying £200 more on their monthly repayments, business leaders warn.

Search property

Headlines

Directory

Alaris

Alaris Logo
Alaris specialise in quality Bathrooms and Kitchens along with many other unique products for your home. The range of kitchens, kitchen worktops and bathrooms is extensive and the highest quality so you are sure to find what you want. New bathroom furniture, bathroom suites, taps, showers and cabinets are added regularly.

Bathrooms365

Bathrooms365 Logo
Bathroom365 supply all areas of your new bathroom - leading-edge designed bathroom suites, stylish bathroom taps and showers, all styles and forms of shower enclosures and a vast collection of bathroom furniture.

Fitmykitchen

Fitmykitchen Logo
Fitmykitchen are specialist suppliers of kitchen appliances, sink taps, waste bins and furniture. So whatever you want from kitchen sink taps to waste bins look no further than fitmykitchen, UK, the specialist suppliers of kitchen appliances, stainless steel sink taps, waste bins and kitchen furniture.

MyStampDuty

MyStampDuty Logo
We help people buying property all over the UK to minimise Stamp Duty Land Tax on residential and commercial property. If you are looking at purchasing a new home or business premises over £500,000, contact us today by completing the form on the right

Oak Furniture Land

Oak Furniture Land Logo
For hardwood furniture, including Solid Oak, Mango, Mahogany, Sheesham, Acacia, Ash and Birch, look no further than Oak Furniture Land.

Rated People

Rated People Logo
Whatever type of home improvement or garden remodelling project you have, Rated People can help you to identify the right tradesmen for the job in a way that is quick, easy, convenient and, as it is based on real-life recommendations, trustworthy.

Residential Land

Residential Land Logo
If you are looking for short or long term rentals in Central London, Residential Land have a portfolio of over 1200 flats and houses in the best postcodes across the Capital.

Simply Bedrooms

Simply Bedrooms Logo
Simply Bedrooms, a part of Sleepwell Bedrooms Ltd, supplying quality beds, wardrobes, sliding door wardrobes and bedroom furniture at low prices and great service, London and Home Counties Specialists.

Door Handles UK

Door Handles UK Logo
Door Handles UK is the UK's largest online range of Door Handle accessories, Door Hinges, Locks and Latches and so much more and all at genuine internet prices. We have a wide range of Chrome, Brass and Glass Crystal Mortice door knobs in both traditional and contemporary designs, whatever your taste and budget you will find a design to suit.

Woodlands Furniture

Woodlands Furniture Logo
We are an established family business situated in rural Herefordshire specialising in beautiful handcrafted classic reproduction furniture. Our comprehensive ranges are readily available from stock.

WowBBQ

WowBBQ Logo
Welcome to the World of Weber. We are the largest independent online Weber BBQ retailer in the United Kingdom. WOWbbq.co.uk is a Weber Partner Store and can give you the best advice for all your Weber BBQ needs.

Join our directory aboutproperty.co.uk

Twitter

Join the conversation at #aboutproperty

Directory articles

A guide to finding the right kitchen sink

When redesigning a kitchen or giving the room a makeover, it is important not to forget about the less obvious aspects of the space. Kitchen sinks are an essential fitting, but often overlooked, despite the fact there is a wide choice of styles available.

Useful tips to help find a flat in London

Looking for flats in London can be a frustrating process, given the capital's size, demand for rental accommodation and varying prices. It is vital, therefore, that you do plenty of research and act quickly to ensure you get the place that you want.

What do you need to consider when buying a mattress?

If you looking for a new mattress, you need to get the decision right, as getting it wrong could impact on your overall health and wellbeing. As well as comfort and size, you also need to consider other points, such as any health issues you may have.