Alliance and Leicester comments on today's decision to maintain base rate at 5.75%

Stephen Leonard, Director of Mortgages at Alliance and Leicester, said:

"Today's announcement to maintain interest rates at 5.75% was widely expected.

The decision reflects continued concerns that recent record oil prices, strong wage growth and a relatively healthy economy will continue to exert upward pressure on inflation.

"Borrowers looking to buy for the first time, or take out a bigger mortgage, should continue to consider a fixed-rate deal, as this will help give them the security of flat monthly payments.

A tracker mortgage is also a sound option for those borrowers who are looking to benefit from the consensus view of interest rate cuts over the next 12 months".

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