"Any decision other than no change would have been a major surprise – we do not expect further Base Rate increases for a couple of months yet."
"Long term fixed rate prices are little changed compared with a month ago. This suggests that the City has not increased its expectation of where Base Rate will peak and is still expecting this to be 5% to 5.25%, a rise which has already been factored into the fixed rate market."
What should borrowers do now?
"We believe that trackers and discounted deals continue to offer the best value when compared to fixed rate deals."
"Those who do not need the security of a fixed monthly payment, should opt for a flexible discount/tracker mortgage and overpay now while rates are still historically low in order to pay off more of their mortgage debt.
Boulger concludes, "Alternatively, a number of discounted capped rate deals have come onto the market that provide the perfect quid pro quo to borrowers nervous about future rate rises but not wanting to miss out on lower rates now"
