Bank holds interest rates

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The Bank of England has announced that interest rates will remain the same in November.

Earlier today (November 8th), the Bank's Monetary Policy Committee (MPC) said that interest rates would stick at 5.75 per cent for the month.

It is thought that the MPC wanted to wait and see what would happen on the global markets before making a decision to either raise or lower rates.

James Caldwell, director at Fair Investment Company, said that the decision was bad news for homeowners.

He explained: "The Bank of England's decision will be a blow for homeowners who are facing higher mortgage repayments as they come off fixed rate deals which they secured when the market was more stable.

"While one can see the logic in maintaining the status quo in such uncertain times, a rate cut would have been of great benefit to borrowers struggling to meet repayments and find affordable credit in the current climate of financial turmoil."

As more people struggle to make their mortgage payments as a result of high interest rates, it is possible that landlords will see a surge in demand for rental properties.

Indeed, a recent report suggested that some homeowners were thinking of selling their property and then renting until they could see what was going to happen to the UK economy in the medium to long term.

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