The Bank of England announced yesterday it has decided to hold interest rates at their current level of 5.75 per cent until next month.

With the impact of turmoil in world banking and past interest rate rises still having an effect on consumers, the National Association of Estate Agents welcomed the decision, commenting that there had been a "reduction in confidence" in the housing market in recent months.

David Kuo, head of personal finance at money website fool.co.uk, pointed out that while the Bank "has chosen to sit on the fence" when deciding where to set the base rate, consumers should "focus on their own finances amidst the uncertainty in the credit market".

"The mortgage market remains competitive with attractive deals on offer. That said, homeowners should nevertheless try to throw as much as they can afford towards their mortgage especially if they are approaching the end of fixed-rate deals.

"Overpaying a mortgage is one of the easiest ways to cut the length of a loan and slash the amount of interest you pay," he said.

Next month''s decision will be announced on November 8th.