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Bank of England holds Base Rate at 5.25 per cent

Bank of England holds Base Rate at 5.25 per cent
Christina Hoghton
Written By:
Christina Hoghton
Posted:
15/12/2023
Updated:
15/12/2023

The Monetary Policy Committee (MPC) has made the decision to hold rates for the third time running.

It comes after 14 consecutive increases in the Base Rate, taking it from 0.1 per cent in December 2021 to 5.25 per cent today.

The committee of nine economic experts voted six to three to hold rates steady.

What does it mean for mortgages?

They’ll be no immediate direct changes but the previous increases to the base rate have already taken their toll on the mortgage market, according to Moneyfacts.

“The past two years have proven to be an unprecedented period of interest rate volatility for mortgages,” said Rachel Springall, finance expert at the independent financial information provider.

“Those coming off a fixed rate deal and wishing to fix once more will likely have to cover a much higher mortgage repayment, with the average two-year fixed rate more than double what it was in December 2021,” Springall added.

At the start of December 2021, the average fixed rate for a two-year mortgage stood at 2.34%, said Moneyfacts. By the start of this month, this rate had risen to 6.04%.