Bank of England maintains interest rates at 5.25%

Despite this decision, rates are still at their highest in 15 years. The MPC voted by a majority of six to three to maintain its current position, with the other three members preferring to increase rates by 0.25% to 5.5%.  

Projections from the MPC also suggest – due to weaker than expected GDP figures, as well as underlying inflationary pressures and increases in government bond yields in advanced economies – CPI inflation will return to its two percent target by the end of 2025.  

Reflecting on the decision, Money Wellness’s head of external relations Sebrina McCullough said: “The interest rate being held for the second consecutive time will bring some comfort to homeowners struggling to keep up with mortgage payments. 

“However, arrears are already 23.3% higher than they were last year and with half a million fixed rate mortgages due to come to an end before Christmas, we’re predicting there’ll be a large rise in people having to seek debt help next year. 

“We’re already helping higher than normal numbers of homeowners, with one in four of those currently in arrears.”

TotallyMoney’s chief executive Alastair Douglas added:“Some homeowners haven’t yet felt the brunt of the previous hikes, and will be in for a shock when their fixed rate deal comes to an end. Mortgage defaults are already rising at the fastest pace since 2009, and if you’re struggling to keep up with payments, then get in touch with your lender as soon as possible.”