The Bank of England’s Monetary Policy Committee today voted to maintain the official Bank Rate paid on commercial bank reserves at 5.5%.

The Council of Mortgage Lenders (CML) welcomes this decision but warns borrowers who will be coming to the end of fixed rate deals in 2007 or 2008 to plan ahead for the higher payments they will almost certainly face.

Michael Coogan, CML director-general, said: “While today’s decision not to raise rates is welcome, there is no cause for complacency. More than two million borrowers over the next year and a half will reach the end of fixed-rate deals, and will face the prospect of higher mortgage payments.

“For most people, the scale of the increase will be manageable. But it makes sense for borrowers whose fixed-rates will end soon to start planning ahead now, and to recognise that their monthly costs will be higher in the future. Anyone who thinks they may face financial difficulties should talk to their lender at an early stage to see what steps can be taken to improve their situation.”