Interest rates held at lowest-ever level in September
The Bank of England’s Monetary Policy Committee has voted unanimously to maintain Bank Rate at 0.1%.
It noted that the outlook for the economy remains ‘unusually uncertain’ and that its economic projections depend on two things – the direct impact of Covid-19 on the economy dissipating gradually, and the UK moving in an orderly way to a comprehensive free trade agreement with the European Union on 1 January 2021.
Based on those assumptions, UK GDP is expected to continue to recover, although unemployment will rise markedly, said the Bank.
What does this mean for mortgage borrowers?
Although wider interest rates can affect mortgage pricing there are lots of other variables for lenders to consider, particularly in the current climate.
However, this month’s rate hold will mean that those on variable rates or tracker mortgages won’t see their pay rate rise.
Fixed rate borrowers are already protected against rising interest rates for the set period of their fixed deal, so will see no changes to their monthly repayments.