Lenders and brokers have reacted to the ‘welcome news’ that the Bank of England has held the base rate today – with one describing it as a ‘small victory for homebuyers’.

Many economists – and those across the industry – were predicting a rate rise of at least 0.25%, but the bank’s Monetary Policy Committee surprised many by freezing it at 5.25%.

This brought to an end the run of 14 consecutive increases.

Benham and Reeves director Marc von Grundherr, says: “Today’s freeze will be a small victory for the nation’s homebuyers who have seen the financial goal posts move constantly in recent months.

“But despite rates remaining unchanged there will still be a real worry for those coming to the end of a fixed rate term, having previously locked in at a relatively affordable rate when they first purchased.

 SPF Private Clients chief executive Mark Harris says: “Following better-than-expected inflation figures, the Bank of England has made the wise move to halt the consecutive rate hikes and give them time to do their job.

“Consecutive rate rises have been painful; it’s time to leave alone for now, rather than causing continued anxiety and distress for borrowers.”

MT Finance managing director Gareth Lewis, says: “Some good news at last for the market, the beginning of the consistency and stability it needs.

“Too much uncertainty is not good for confidence but with inflation coming down further and the Bank of England choosing to keep rates where they are, in theory this should be the peak.

“The knock-on impact is that borrowers have a better idea as to where they stand and where mortgage pricing is going to be.”

Spicerhaart and Just Mortgages chief executive John Phillips says: “Like many, my expectation was that the Bank of England would follow the European Central Bank and go for one more increase.

“However, I’m delighted to be proven wrong and see the MPC hold rates instead.

“This will certainly be a positive for mortgage holders, borrowers and the general public who have been demoralised by fourteen straight interest rate rises.

Bluestone Mortgages chief executive Steve Seal says: “Consumers and borrowers across the country can finally let out a huge sigh of relief as interest rates remain unchanged at 5.25% after 14 consecutive months of rate rises.

“This combined with the return of rates below 5% indicates that we may have turned the corner and should give borrowers a boost of confidence.”

Former RICS residential chairman and north London estate agent Jeremy Leaf says: “The unexpected fall in inflation made this interest rate decision harder than it might have been.

“Last week it was an odds-on certainty that rates would rise by at least a quarter point, but the climate has since changed.

“What it does show is that it is dangerous to make a snap decision based on one month’s figures and then regret it later.

“Stability is so important to the property market and brings confidence to buyers and sellers sitting on the fence finding it difficult to budget before deciding to make their moves.

“This hold, after many months of rises, will bring some welcome reassurance.”

The post ‘Huge sigh of relief’: Industry reacts as BoE freezes base rate appeared first on Mortgage Strategy.