Fool.co.uk responds to the Bank of England's interest-rate decision

David Kuo, Head of Personal Finance at Fool.co.uk, says:

"We are not surprised that the Monetary Policy Committee has chosen to sit on the fence regarding interest rates this month.

"Arriving at a decision about interest rates this month must have been especially tricky given the turmoil in the credit market prompted by the near collapse of Northern Rock, the impact of high oil prices on inflation, and the risk of recession brought about by the credit crunch.

"However, consumers should not concern themselves too much with what the Bank of England may or may not do.

Instead, they should focus on their own finances amidst the uncertainty in the credit market.

"There have been indications that borrowers with less-than-perfect credit records may be penalised by less favourable deals as banks tighten their lending criteria.

However, the mortgage market remains competitive with attractive deals on offer.

"That said, homeowners should nevertheless try to throw as much as they can afford towards their mortgage especially if they are approaching the end of fixed-rate deals.

"So, while the Bank of England may be happy to sit on the fence, borrowers should not sit on their hands.

Overpaying a mortgage is one of the easiest ways to cut the length of a loan and slash the amount of interest you pay.".

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