Move to freeze interest rates 'positive news' for Bolton homeowners

Interest rates had been increased 14 times in a row but the Bank put an end to the rise last week.

The decision comes as Office for National Statistics data found inflation was 6.7 per cent in August, down from 6.8 per cent in July.

The Bank itself had earlier forecast August inflation at 7.1 per cent.

The current base interest rate in the UK is 5.25 per cent, the highest it has been in 15 years.

But last week was the first time since November 2021 that the Monetary Policy Committee met without deciding to raise interest rates.

The Bank of England (Image: Yui Mok/PA)

Homeowners will benefit from the move to freeze interest rates, according to Andrew Cardwell, managing director of Cardwells Estate Agents, which operates in Bolton.

He said: “The better than expected inflation figures have helped put an end to successive interest base rate increases.

“This steadying of the interest rate will be welcome news to homebuyers, who have already felt the impact on mortgage rates which have risen over the summer.

“Stability is important to the property market, and this hold on the interest rates will offer some welcome reassurance and may bring an element of confidence to buyers and sellers who have perhaps been undecided about making a move.

“It’s certainly positive news for the property market in general, particularly those who are looking to buy or sell.

“There has been some softening of the interest rates prior to this announcement from a number of lenders recently, and this may well continue to the wider mortgage market now.

“This decision will also come as welcome news for the approx. 1.5 million households who will be coming to the end of their fixed rate mortgages this coming year.”

Andrew Cardwell, managing director of Cardwells Estate Agents (Image: Andrew Cardwell)

Bolton and Bury-based AFG Law’s head of residential property, Carl Fletcher, welcomed the move too.

He said: “The decision by the Bank of England to freeze interest rates is welcomed – particularly by those property owners on tracker rates, who will not suffer any further increases in their monthly payments.

“Some market analysts also predict that it is likely that lenders will continue to reduce interest rates on their products, which is great news for those who are looking to enter the market and able to act fast.

“It will also hopefully provide a period of stability for current mortgage holders.”

AFG Law’s head of residential property, Carl Fletcher (Image: AFG Law)