Bank of England Holds Rates Steady, Homeowners Face Higher Costs
Despite inflation hitting the 2% target, the central bank maintains the base rate at 5.25%, impacting mortgage affordability.
- The Bank of England's decision to hold the base rate at 5.25% comes as inflation reaches its target for the first time since 2021.
- Mortgage rates remain volatile, with average fixed rates for two and five-year terms showing slight increases.
- Homeowners on standard variable rates could pay up to £1,000 more annually, particularly in higher-priced regions like London.
- The decision is seen as a 'painful' move for borrowers, with many awaiting potential rate cuts in August.
- Savings rates have seen minor adjustments, providing some relief to savers amid the ongoing economic uncertainty.
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