In response mortgage brokerage, Charcol, has urged borrowers to take out capped rate mortgages, as discounts and trackers are more likely to be affected by the expected upswing in rates later on this year.
Alison Cooley, spokeswoman for Charcol, said: "This was a wholly expected decision, the fifth freeze in a row. While it is feasible that the Base Rate will remain at four per cent for the next few months at least, we have, over recent weeks seen a growing disparity between fixed and discount rate deals. With well over fifty separate lender notifications of fixed rate increases or closures in the last three weeks, the three and five market leading capped rate deals are looking increasingly appealing."
