UK interest rates remain on hold
The Bank of England has kept UK interest rates on hold at 0.5% for the seventh successive month.
The decision by the bank's rate-setting committee was widely expected and the news comes hot on the heels of an announcement by the Council of Mortgage Lenders (CML) which suggests that an estimated 100,000 people a month are benefiting from a drop in their mortgage bills as interest rates remain low.
The CML's figures show that for those able to secure a home loan, mortgages have been at their most affordable since March 2004.
Borrowers of loans for house purchases in July 2009 were spending an average of 12.7% of their income on mortgage interest payments, compared with 18.1% for loans secured a year earlier.
It also found that of the 42% of existing mortgage-holders that were on fixed-rate deals, most were generally on lower variable rate loans.
Cheaper mortgage bills are more likely to be felt by those coming to the end of fixed-rate terms, and most of these people are thought to be allowing their deal to switch automatically to a cheaper variable rate rather than remortgaging.
However, some indication of whether home buyers expect rates to rise in the future comes from the proportion who are making the most of relatively low rates and taking out fixed-rate deals when buying now.
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