Base Rate held at 4%: but what could it mean for mortgages? 💹
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💰 Bank of England Holds Base Rate at 4% — What It Means for Mortgages & Buyers in 2025
🧾 Key Takeaways
✅ Base Rate held at 4% for now
✅ Mortgage rates are lower than last year but could fluctuate
✅ Inflation remains the key risk factor
✅ Buyers have a window to plan strategically
✅ Next Bank decision: 6 November 2025
The Bank of England has announced that it will hold the Base Rate at 4%, following its 0.25% cut in August. With inflation proving stubborn at 3.8%, the Bank is treading carefully as it weighs up economic stability and future borrowing costs.
This decision has big implications for homeowners, buyers, and investors, as the UK navigates a shifting mortgage landscape.
📌 1. Key Highlights from the Interest Rate Update
🏦 Base Rate remains at 4%, signalling caution after the first small cut earlier in the summer
📈 Inflation sits at 3.8%, still well above the Bank’s 2% target — a major reason for the pause
⏳ Markets expect the next Base Rate cut in early 2026, though this may change depending on data
📉 Mortgage rates have eased significantly compared to 2023:
5-year fixed: ~4.56% (down from ~6.08%)
2-year fixed: ~4.53% (down from ~6.61%)
🌐 Experts warn rates could drift slightly upward if inflation remains sticky or external shocks occur
📝 Next Bank of England decision: scheduled for 12 pm on Thursday 6 November 2025.
🏡 2. Mortgage Market Snapshot
The Base Rate pause has a mixed impact depending on your mortgage situation:
✍️ Fixed-rate mortgage holders — Your monthly payments remain unchanged until your current deal ends
💡 Variable or tracker mortgage holders — No change this month, but future adjustments will follow Base Rate decisions closely
🚨 Standard Variable Rate (SVR) mortgages remain high at around 7.14%, meaning switching deals or remortgaging is still essential for cost savings
⏰ With many fixed terms ending over the next 12 months, timing is key for borrowers looking to lock in a new deal
👉 Tip: Start researching remortgage options 4–6 months before your fixed deal ends to avoid reverting to expensive SVRs
🧠 3. Expert Commentary & Market Outlook
🌍 The rate hold was widely expected — the Bank is keeping options open while monitoring inflation trends and global conditions.
📈 Some analysts believe short-term rate pressure may rise again if inflation doesn’t fall further in Q4.
🫁 For buyers, this period of stability provides breathing room to plan future purchases and mortgage applications.
🍂 Economic data over the autumn and winter months — particularly inflation releases and global developments — will heavily influence the next rate decision.
👀 All eyes are on the 6 November 2025 Bank meeting, which could set the tone for early 2026.
📝 4. What This Means for You
Here’s a quick breakdown of who’s affected and how:
🏠 Homeowners Fixed deals are unaffected for now, but remortgage timing matters
💼 Buyers Slightly improved mortgage affordability vs 2023, but uncertainty remains
🧾 Investors Stable rates help short-term planning, but inflation risk lingers
🧮 Landlords SVR levels still high; refinancing opportunities should be explored
For the latest mortgage rates from Rightmove, click here 💹
📢 The person to best guide you through this is a qualified mortgage broker: they are critical in the entire process of securing the funds you need and liaising with your solicitor to ensure everything runs smoothly 🥇
If you would like us to put you in touch with the right mortgage specialist, complete the form opposite ➡️ or email lisa.dahl-parsisson@cavendishproperty.co.uk 📧
📸 LEAD IMAGE | FOR SALE by Cavendish Residential 🏡 Charming 3-bed home in Netherfield — ideal for first-time buyers or investors. Features a modern kitchen, spacious living areas, private garden, driveway and garage. Set in a peaceful neighbourhood, it’s move-in ready and full of potential. Guide price £195,000 — don’t miss out on this fantastic opportunity! ✨
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