Bank keeps base rate at 0.5%

Homeowners looking for finance to build a conservatory or pool house may be interested to learn the Bank of England has opted to keep the base rate of interest the same for another month.

The Banks Monetary Policy Committee opted to retain the record-low rate of 0.5 per cent.

A number of financial commentators have offered their opinions on the decision, with some stating the lack of change was to be expected.

One body welcoming the hold was the Association of Mortgage Intermediaries, which suggested the choice was sensible.

The organisation stated it was important to ensure the demand for finance was nurtured, giving the property market a boost.

It said: "The Bank and the lending industry must do more to ensure that sufficient finance is available to give the housing market a further nudge."

Meanwhile, a Mortgageforce spokesperson suggested those with variable rate packages can now gain a clearer understanding of how their fiscal situation will look after the mid-August Inflation Report is published.