Related topic: Bank of England

Industry experts have cautioned that today's hold is 'not a signal that rate cuts are back on the table', instead not ruling out a base rate rise before the end of 2026.

The average interest rate on newly drawn mortgages increased to 4.35% in June, from 4.22% in May.

The prospect of higher borrowing costs comes at a time when the majority of households are still struggling with the cost of living.

The Bank of England is expected to maintain its 'wait and see' approach at next week's meeting.

The UK economy is showing signs of resilience despite an uncertain geopolitical environment. 

The typical household will see payments rise by around £540 a year, however, a number of households are projected to see a significant increase in repayments.

Net mortgage borrowing decreased to £2.9 billion in May, from £4.4 billion in April.

An extended hold to interest rates is "very much the correct and appropriately measured policy response", Taylor said.

A hold was widely predicted after UK CPI inflation held steady at 2.8% in May.

The surprise inflation figures "could trigger a mortgage price war", industry experts predict.