Brian Murphy, Head of Lending at Mortgage Advice Bureau (MAB), comments:
“The Bank of England’s decision to keep the base rate at 0.5% is not the news that savers have been looking for, but it is certainly good for borrowers. Consumers have been revelling in historically low mortgage rates and strong competition between lenders should continue to fuel some very attractive deals. Zero percent inflation will also give borrowers a lift, with the low price of food and consumer products easing some of the pressure on household budgets.
“Today’s report brings a double dose of good news for anyone seeking a mortgage in the second half of 2015, with approvals forecast to rise while borrowing costs remain low. There are a record number of products currently available on the market. One year on from implementing the Mortgage Market Review (MMR), competitive pricing is essential for lenders to stand out from the crowd.
“Looking beyond the next 12 months, borrowers will also be reassured that the Bank remains committed to gradual changes when the base rate eventually rises. This should protect borrowers from any shocks and give them plenty of time to adjust their finances.”