Recently, research from Moneyfacts.co.uk was released regarding the popular tracker and fixed rate mortgage loans.  The results were not surprising as the base rate remains a historically low 0.5%, following the latest meeting with the Monetary Policy Committee.  In fact, the rates are the lowest they have been in the 23 years.  The rates were this low back in 1988.

Earlier in the year, a spike occurred in the mortgage loan market which was short lived.  This spike was due to the intensity of rumors swirling around about a rise in the base rate.  That rise did not take place and now the Bank of England has just decided once again that the rate needs to stay at the same low level.  This decision is in spite of the elevated inflation rate of more than 4.0%.

A hike in the base rate is now not expected until the first part of 2012.  This decision is practically guaranteed after considering the decision to hike the rate in the last monthly meeting fell by a decisive 7-2 vote.  That vote is even more lopsided than the 6-3 vote which took place in the month prior.

Michelle Slade, of Moneyfacts.co.uk, commented on borrowers procrastinating during this time, saying: “If borrowers delay too long to secure a new mortgage deal, they could find that they miss out on some of the lowest rates ever seen.”

The Bank for International Settlements published its annual report recently and questioned the Bank of England’s hesitation to raise the base rate.

The BIS commented on credit crisis and the lingering effects, saying: “All financial crises, especially those generated by a credit-fuelled property price boom, leave long-lasting wreckage.”