Bank of England interest rates stay at 0.5%

Posted: 07 Aug 2009 09:46:41 GMT

Property owners discovered yesterday that the cost of borrowing will remain at 0.5 per cent for the next month.

The Bank of England interest rates were announced at noon and for the fifth month in succession they were frozen at their record low level.

Experts have widely predicted that there will be no change in the base rate for the rest of the year and some observers have suggested that the Bank's monetary policy committee will keep it at this level for longer than that.

Some consumers on tracker mortgages will have benefited from low monthly payments on their home loans during the 0.5 per cent interest rate period.

Indeed, the managing director of residential landlord services website Smartlandlord.co.uk Keshav Thukaram indicated that some landlords "are having a cash ball" at present due to the low cost of borrowing.

However, he warned that when the economy has bottomed out landlords should be prepared for the rate increase.


© Houseladder Ltd