Adam Oldfield, chief revenue officer at Phoebus, says:

“Today’s decision by the MPC will come as no surprise, but it will no doubt cause consternation for many borrowers.

“Whether it was the right decision is questionable, especially when we saw the first dip in inflation last month. Perhaps it would have been wiser to give the last rise more time to take affect?

“It will certainly be interesting to see the results of the upcoming review of the bank’s forecasting and procedures and how that may influence the members going forward.

“Although there has been a spate of mortgage rate cuts recently, the general consensus will be that a base rate hike will surely mean an increase in mortgage interest rates.

“Hopefully, the speculation of an increase will have been enough for people to take stock and look at their mortgage affordability and current spending to prepare for a potential increase in mortgage payments.

“This provides opportunities for both brokers and lenders to look at their books and identify the most exposed borrowers.

“The last thing that lenders need is a big increase in mortgage defaults and repossessions.”