The Monetary Policy Committee at the Bank of England voted by a majority of 7-2 to maintain the Bank Rate at 0.1% in November.

However, the Committee admitted that economic developments had reinforced its view that ‘some modest tightening of monetary policy over the forecast period was likely to be necessary’.

In other words, rates might have to rise soon to bring down inflation. But not today.

Iain McKenzie, CEO of The Guild of Property Professionals, said: “The absence of an interest rate rise from today’s announcement provides much-need breathing space for those worried about their mortgage payments.

“Impending rises are only likely to be delayed for a short while, so it is worth preparing for the effect it could have on your chances of getting a mortgage.

“Over 80% of homeowners are tied into fixed-rate mortgage deals, so it is unlikely to affect most people in the short term.

“Any future rise in interest rate could potentially put the brakes on the house price boom of the past year, with more prospective buyers possibly deterred by the increased costs of buying a home.”

What does a rise in Bank Rate mean for borrowers?

Bank Rate is linked to savings and mortgage rates – sometimes directly but usually indirectly.

If the Bank Rate is increased as is expected at some point in the coming months, you can expect to see mortgage rates rise which will affect some borrowers’ monthly repayments.

Those on a fixed rate won’t be affected by these rises until their deal comes to an end.

But borrowers on a variable rate (that can move up or down) – such as a tracker or discounted rate – could see their pay rate and therefore monthly repayments rise. And new mortgage rates would be likely to rise too.

Since Bank Rate was held today, those on a variable rate mortgage won’t see any immediate changes to their pay rate.