Alliance and Leicester comments on today's MPC decision to maintain base rate at 5.25%

Edited by the Insidemoneytalk editorial team Apr 6, 2007

Stephen Leonard, Director of Mortgages at Alliance and Leicester:

"General consensus within the industry pointed to the base rate staying the same this month but many now expect a hike in May.

The money markets have been pricing in at least one rise in the base rate this Quarter, with rates potentially being cut later in 2007, or in 2008, as inflation drops back towards the MPC target of 2%.

"Borrowers looking for stability should lock in to a competitive fixed rate and avoid the impact of any further rate rises that are expected later this year.

Alliance and Leicester is currently offering a competitive 2 year fixed rate mortgage with a rate of 4.99%.

For those with a bit more flexibility, there are some excellent base rate trackers available, priced more cheaply than short term fixed rate deals.".