HOMEOWNERS were spared higher mortgage costs after a knife-edge decision by the Bank of England kept interest rates at four per cent. Analysts believe the vote was close as the Bank's rate-setting committee balanced concerns over soaring house prices and consumer debt levels with the need to keep the economic recovery on track. Despite the reprieve, experts warned households that a quarter-point increase in interest rates was almost certain next month. The Bank has increased its base rate twice in the past five months, although it has stressed the need for a gradual approach to raising borrowing costs.
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