For the 12th consecutive month, the Bank of England has voted to keep the base rate at the all-time low of 0.5 percent. Experts say that this is good news for mortgage borrowers who will see continued reductions in mortgage interest rates. Ray Boulger of the independent mortgage advisory firm John Charcol says that with the easing of the economic situation, decisions like base rate will be 'all about the politics'. He expects the outcome of the next general election to have a significant effect on mortgage rates.

While the news about the bank rate is not a surprise, “while bank rate remains dormant, mortgage rates continue to drift lower." Competition is returning to the mortgage market, rates have been cut and higher LTVs are making a comeback.Mr Boulger believes that continued economic uncertainty cannot be ignored, however, and suggests that tracker mortgages might still be the best choice for borrowers as interest rates are predicted to remain low for some time to come. The base rate would have to rise significantly and steeply for variable-rate mortgages to catch up with fixed rates currently available.

Borrowers should seek expert mortgage advice as to what is best for them in their specific circumstances. He said "The message for borrowers is simply that no generic advice will do. The political uncertainty may mean the right choice for some borrowers is to batten down the hatches and lock into a fixed rate for at least five years, but with the difference between these and the best tracker mortgages around 2.5%, there is a big premium for the security of a fixed rate," . "Seeking independent mortgage advice on your own specific situation has arguably never been more important."

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