Alliance & Leicester hold bank base rates
The MPC has decided to hold the Bank Base Rates at 5.25%. This was highly expected due to the recent cut made in response to the continued interference within the global credit sectors, easing UK property prices and mortgage applications.
A recent survey carried out indicated that fixed rate products were a popular choice for borrowers, and the base Rates remained at 5.25 per cent throughout March 2008.
The Bank of England is planning to increase and move upto 3 per cent during 2008. Numerous analysts predict only diffident base rate cuts, with the Base Rate in time increasing to 5%, a vision contrasted in the medium to long term pricing of money.
Director of Sales at Alliance & Leicester, Mark Blackwell commented on this matter: “In such an environment, borrowers need to think carefully about the down side of locking into variable rates as the economic environment can change quickly.
He added, “Fixed rate products continue to remain a wise choice for first time buyers, people moving house or refinancing.”
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