The Bank of England’s Monetary Policy Committee (MPC) has voted to keep the standard base interest rate steady at 0.75%. This had been the expected outcome of the meeting by experts. There is still uncertainty ahead in the year with the Brexit delay. However, there is the need as for the MPC to keep inflation in control and close to the target of 2.0%. Keeping it close to target will sustain growth and employment.

Despite the vote by the MPC it doesn’t mean that lenders will be continuing their offers of low interest rate mortgage and remortgage deals seen currently. There is a cooling off of the competitiveness seen previously as many lenders are viewing the mortgage and lending market as a lower priority business choice. Interest rates have been so low that profitability is not in line with the risk that lenders take, so some are bowing out.

In those lenders leaving the mortgage and remortgage lending market there is less competition. Lower competition means that there are fewer products available. Fewer products and fewer lenders mean that there is less reason to be competitive and fight for the attention of borrowers. Thus, less super attractive deals will be offered.

Also, the global economy is not as steady as was hoped, and lending is becoming more expensive. Those expenses must be passed along to the borrowers.

It will always be true that the Bank of England’s MPC choosing to change the standard base interest rate will impact borrowers, but other factors contribute to the interest rate offerings for homeowners seeking remortgages and home buyers securing mortgages.

The MPC may have stayed steady in their decision, but it doesn’t mean that borrowers can ignore the market and expect the low interest rates of today to be there tomorrow.