Base Rate remains at 0.5%

05 June 2009

Many analysts believe the base rate will remain at 0.5% until well into 2010.

Whilst that's great news for those borrowers on tracker rates, those who are sitting on the fence on their lenders standard variable rate, waiting to see what happens, face a much bigger potential problem than splinters.

They can sit tight and enjoy their low rate however if they need financial stability the time to get off the fence is rapidly approaching.

Swap rates which lenders use to fund their fixed rates have been increasing in the past few weeks and we have seen fixed mortgage rates edging upwards.

If borrowers want to fix their mortgage the time the time to act is now, delays will be costly.