Interest rates remain unchanged at 5%

08-Dec-2006

First time buyers can enjoy a further month with the cost of borrowing unchanged, after the Bank of England's announcement that interest rates will stay at five per cent.

Although widely expected, yesterday's decision by the Bank of England's monetary policy committee (MPC) will leave first time buyers uncertain of whether interest rates have peaked or if there are further rises to come.

"For those borrowers who don't need the interest rate security provided by a fixed-rate mortgage, trackers continue to look attractive," said Ray Boulger, a representative from John Charcol.

Indeed, a recent survey by Reuters has found that most economists expect further interest rate increases by March 2007, particularly if house price rises continue at their current rate.

Last month, annual house price inflation grew at 9.6 per cent.

For advice on first time buyer mortgages or to find out how much you can borrow and how much it would cost you, contact a good mortgage broker.

As the market for first time buyers toughens, new companies are offering new services to help first time buyers buy new properties by working with the house-builders.

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