The Bank of England continued its freeze on interest rates today with its last monetary policy decision of what has been a tumultuous year for the UK economy.
Policymakers were widely expected to hold at 0.25 per cent, with signs of economic resilience undermining calls for another cut and uncertainty over the Brexit effect prevailing against a rise.
Financial markets reckon there is a 50% chance of a rate rise by December this year, although many economists now think it could be much later.
Property Expert and eMoov CEO, Russell Quirk, comments on today’s rate freeze:
“Today’s decision is great news and will no doubt boost both UK buyers and sellers, as well as the wider economy. It also acts as validation that the over-all market stability seen throughout 2016 should carry on well into 2017, with the UK property market remaining in good health.
With interest rates remaining as they are, the wider availability of affordable mortgage rates should further encourage potential buyers that now is as good a time as any to get that first foot on the ladder.
Some may even argue that a slight cooling in property values across the nation isn’t such a bad thing and will further aid struggling buyers and help to partially address the growing housing crisis in the UK, although those already on the ladder may not share such a view.
But a word of warning, those looking to buy should still do so wisely and not be encouraged to buy beyond their means due to today’s further rate freeze. It is inevitable that at some point, interest rates will increase and the “normal rate” being enjoyed currently could increase to three or four percent. Should this happen, those that are ill-equipped to deal with the escalating financial costs, will find themselves in a very tough predicament.”
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