This week’s decision by the Bank of England to hold the base rate at 5.25% after 14 back-to-back rises has left borrowers sighing with relief. It was a close-run thing, with almost half of the monetary policy committee voting for a further increase, and it is not clear if it heralds an end to these or only a pause. Many experts, however, think rates are now at or near their peak.
If you are about to take on a new mortgage, the outlook for interest rates will be a factor in your decision, as well as your capacity to cope if they don’t go in the direction the financial world expects.
