The Bank of England has maintained rates at 3.75%, providing short-term stability for the mortgage market. However, the broader outlook remains more uncertain. Market expectations have shifted in recent weeks, with pricing now reflecting the possibility of further rate increases rather than cuts. This has already begun to influence swap rates and, in turn, mortgage pricing. For mortgage and property professionals, the impact is being felt across both existing borrowers and new entrants to the market. Those approaching the end of fixed-rate deals are facing higher refinancing costs, while affordability constraints remain a key consideration for prospective buyers.
Mortgage and property professionals are reacting to the latest decision:
Ben Nichols, Managing Director of RAW Capital Partners, said:
“There was some talk of a rate hike ahead of today’s decision, so the market will be breathing a small sigh of relief that it has held steady for now. The conflict in the Middle East has clearly added some upwards pressure to the inflation outlook, particularly around energy costs, but growth has to remain part of the conversation too. On that front, after a challenging few years, it’s encouraging to see the Bank avoid adding further pressure to the economy.
“For the property market, it also gives brokers and borrowers a bit more certainty in the short term. We’ve already seen some lenders start to reduce rates after initially pricing in more risk and, hopefully, today’s decision supports that trend and gives brokers and borrowers more confidence to move ahead with their plans.
“That said, the speed at which rates have risen since the start of the conflict has naturally affected sentiment, so lenders need to keep providing clarity and flexibility, while listening closely to the challenges brokers are seeing on the ground.”
Ben Allen, Managing Director at The Right Mortgage & Protection Network:
“The MPC’s decision to hold BBR may be slightly surprising given the jump in inflation last week, but at the same time, members have clearly asked themselves what would be achieved by an increase at this point. The answer is perhaps very little, apart from heaping slightly more pressure on mortgage borrowers at a time when the cost of living is rising.
The last decision to hold gave the Committee breathing space, and with that time now passed, it is clear they still see enough uncertainty to avoid moving too soon. A stable ‘wait and see’ approach always felt like the most likely outcome.
For the mortgage market, Bank Rate of course, is only part of the picture. Swap rates continue to drive many pricing decisions, and these have been far from stable. We have seen sharp movements which have made it hard for lenders to price products with confidence, although there has been some calm more recently, allowing some rates to edge down and products to return.
That said, this stability may not last. The priority for advisers and borrowers is to secure suitable deals when they appear, particularly for those coming up to refinance, while keeping the option to move if pricing improves.”
Steve Cox, Chief Commercial Office at Fleet Mortgages:
“Today’s decision to hold Bank Base Rate at 3.75% underlines just how difficult the current environment is for the MPC. In most cycles, it’s possible to get a fairly clear sense of the likely direction of travel ahead of the announcement, but this time it has been far less predictable.
That reflects the complexity of the situation, particularly given the geopolitical risks we’ve seen emerge since March and the challenge of trying to future-proof policy against those uncertainties. With the announcement last week that inflation has risen to 3.3%, and expectations that it could move higher in the months ahead, it’s understandable that the Bank has continued to wait and assess.
In the buy-to-let market, we have seen some welcome stability return to product pricing in recent weeks, but it would be unwise to assume this will continue uninterrupted. Swap rates remain volatile and are highly sensitive to wider economic and political developments, which makes consistent pricing difficult for lenders. Advisers and landlord clients therefore need to remain alert to changes and be ready to act when opportunities arise, particularly in a market where conditions can shift quickly.”
Jeremy Leaf, north London estate agent and a former RICS residential chairman, says:
“Although it is likely interest rates will go up again before they start coming back down, the hold today is a nod to the inflationary pressures which are building due to the impact of war in the Middle East. Certainly, the Bank did not want to do anything which would compromise what little growth we have seen in the economy recently, which would clearly prove to be self-defeating.
As far as the impact on the property market is concerned, the effects are likely to be fairly minimal, although encouragingly, we have noticed some mortgage costs starting to creep down again. This will certainly help to improve confidence, which remains at a relatively low ebb.”
Amy Reynolds, head of sales at Richmond estate agency Antony Roberts, says:
“While a hold from the Bank of England was expected, as ever it’s the tone and forward guidance in the minutes that is just as important.
As far as the housing market is concerned, the underlying need to move remains strong and, for well-priced, high quality homes, demand continues to hold up. In terms of pricing, the closer the asking price is to true market value, the greater the likelihood of securing a successful sale.
Buyers are not stretching themselves to make offers they don’t believe will be accepted – particularly in this rate environment – they are simply choosing alternative properties. While the wider economic background may temper the pace of house price growth, we are seeing a more price-sensitive market where realism and accurate positioning are key.”
Adrian Moloney, Group Lending Distribution Director, OSB Group, comments on today’s Bank of England interest rate decision:
“The Bank of England’s decision to hold interest rates was widely expected and reflects just how finely balanced the outlook remains. Inflation has increased in recent months, driven in part by rising energy costs, which reinforce the challenge policymakers face in bringing it back to target sustainably.
Although a hold brings a degree of short-term stability, it doesn’t remove the uncertainty facing borrowers and brokers. Expectations around the future path of rates continue to shift, and it is this volatility, rather than the level of rates alone, that is shaping behaviour across the market.
For borrowers, this is unlikely to translate into a material change in mortgage pricing in the near term, as much of that is already driven by forward-looking expectations and the crisis in the Middle East. At the same time, affordability pressures remain firmly in place, particularly for those coming off fixed-rate deals.
In the rental market, landlords are still absorbing the cumulative impact of higher borrowing costs, which continues to influence rents and supply. Against this backdrop, the value of professional advice becomes even clearer, helping borrowers navigate a market that is holding steady for now, but far from settled.”
Sarah Pennells, consumer finance specialist at Royal London, said:
“The Bank of England’s decision to keep interest rates on hold at 3.75% reflects the uncertain global backdrop. While concerns around energy prices and the risk that inflation could stay higher for longer haven’t translated into further rate rises, they do mean rates are being held at current levels for longer than many borrowers might have hoped.
That uncertainty has already fed through into the mortgage market. Although some lenders have cut selected rates in recent weeks, anyone coming to the end of a deal should get independent advice, as a broker can help navigate a fast‑changing market and identify options that aren’t always available directly from lenders.
Even for the 38% of adults who own their home outright, today’s decision is likely to weigh on their confidence. With one in five adults telling us they’ve struggled to make their rent or mortgage payments over the past year, pushing interest rate cuts further into the future risks people becoming more cautious – whether that’s reining in spending, delaying big financial decisions, or prioritising building a financial buffer in case household costs rise again.
While rates may still fall over time, today’s decision is a reminder that the path down is unlikely to be smooth, and expectations can change quickly.”
Peter Richmond, Sales Director at Welcom Digital, comments:
“Holding the Bank of England interest rate at 3.75% keeps the mortgage market in a cautious holding pattern, particularly against a backdrop of continued uncertainty in global markets. While stability will be welcomed, borrowers remain wary about what comes next, and we’re seeing that feeding into slower decision‑making across purchases and refinances.
For lenders, a prolonged hold is actually one of the more operationally demanding scenarios. Volumes don’t fall away, but customer expectations shift quickly as speculation about future cuts continues. Lenders need clear visibility across their loan book, the ability to reprice products efficiently, and the flexibility to respond if sentiment changes again.
In this environment, the focus remains on readiness, ensuring products, pricing and mortgage journeys can adapt quickly as market sentiment continues to shift.”
Ben Thompson, Director of Home Moving Strategy, Mortgage Advice Bureau:
“The Bank of England holding the base rate brings a welcome sense of stability at a time of ongoing uncertainty. While it won’t lead to an immediate drop in mortgage rates, it does support continued competition among lenders and gives borrowers a clearer backdrop to plan against.
For those remortgaging or moving home, it’s less about sudden change and more about greater certainty and the ability to plan ahead. The biggest opportunity, however, could be for aspiring buyers. Our research shows 47% of renters would buy immediately if mortgage payments matched their rent, and with rates stabilising, that gap is starting to narrow in some cases.
Despite this, hesitation remains – with 41% still waiting for a ‘sign’ to act. This latest decision could help provide that nudge by removing a layer of uncertainty. Ultimately, the challenge now isn’t just affordability, but awareness. Many buyers are closer to homeownership than they think, and clear, expert advice will be key to helping them take that next step.”
Nathan Emerson, CEO at Propertymark, comments:
“Considering current tensions worldwide, it is reassuring to see base rates held steady. For those on the property ladder or thinking of approaching the buying and selling process, today’s news brings a sense of relief across the coming months.
However, being realistic in sentiment, we currently sit in the middle of a sensitive situation where many households haven’t yet fully recovered from issues connected to the cost of living. While it may genuinely feel the pressure is still on regarding affordability, it is hoped that as tensions de-escalate globally, we will proceed to a more confident footing which offers more robust levels of household affordability for consumers within the long-term journey of purchasing a property.”
Colin Bell, Founder and COO of Perenna:
“The market is already pricing in hikes further down the road, so while a hold might appear positive on the surface, the reality for homeowners is that mortgage rates could continue to creep upwards.
This is ultimately a symptom of a wider problem. For many households, the stress doesn’t come from today’s decision alone, but from a complete lack of clarity around how much their monthly repayments will increase the next time they remortgage. This is also occurring alongside a resurgence in household inflation, increasing pressure on everyday living costs, an area where consumers have limited ability to shield themselves.
Short-term fixes have a valuable and crucial role to play in a functioning mortgage ecosystem, but they cannot be the be all and end all. Plenty of families would massively benefit from a longer fix, protecting them from the impact of these decisions and allowing them to save and invest with confidence.”
Ryan McGrath, Director of Second Charge Mortgages at Pepper Money, comments:
“Today’s decision to keep the base rate unchanged reflects the delicate balancing act the Bank of England is currently facing, as ongoing global volatility, rising inflation, and renewed energy pressures disrupt earlier hopes of rate cuts.
For homeowners, a continued hold prolongs this period of elevated borrowing costs. While stability is welcome, households are having to think very carefully about how they manage their finances. For those who need to raise additional capital, refinancing an entire property at today’s rates can often mean abandoning a highly competitive fixed deal, resulting in a significant step up in monthly payments.
As a result, we are seeing a sustained shift in how borrowers approach their financing. Second charge mortgages are increasingly viewed as the most practical way to access funds. They allow homeowners to unlock equity for essential purposes like renovations or debt consolidation without disturbing their existing, lower-rate mortgage. This ability to preserve a favourable primary rate is a key reason why second charge lending has become a mainstream funding option for borrowers.”
Nigel Bishop of buying agency Recoco Property Search says:
“With inflation on the rise and ongoing political uncertainty, a rate cut was highly unlikely. Some mortgage-dependent buyers might decide to stall their search for the time being, whilst others, particularly cash buyers, will cease the opportunity of a less competitive property market.”
Melanie Spencer, growth director at Target Group, said:
“The central bank faces a real tug of war as it looks to control inflation and avoid further pressure on the real economy – all while navigating the implications of the Iran conflict. Against this complex backdrop, holding the base rate appears to be the most pragmatic course of action, mirroring the Fed’s decision yesterday.
Ahead of today’s announcement, we have already seen a number of lenders reduce mortgage rates and bring products back to market – showing that there is some margin to work with and an appetite for competition. However, with markets still pricing in the possibility of further rate rises, uncertainty remains a key feature of the outlook, particularly as inflationary pressures continue to evolve.
As lenders find the balance between meeting lending targets and shrewd pricing, operational agility becomes even more of a factor. Lenders that can respond quickly to shifting market dynamics, renewed competition and evolving borrower needs will be best placed to support intermediaries and their clients in the months ahead. Ultimately, success will hinge on efficient, scalable and tech-enabled operations – whether delivered in-house or outsourced to the right partners.”
John Phillips, CEO of Just Mortgages and Spicerhaart, said:
“The decision to hold rates today will come as a relief to many, particularly given the shadow of uncertainty that continues to hang over markets following recent geopolitical tensions. There had been concern that rising pressure on inflation and energy prices could force a more hawkish response from the Bank, so a hold should help steady some nerves for now.
That said, it does little to remove the uncertainty around where rates go next. Markets are still trying to assess how prolonged global disruption could impact inflation and whether that risks slowing or even reversing the current direction of travel for rates. Borrowers are increasingly aware that expectations can shift very quickly and that is feeding into decision-making.
Despite that backdrop, we are seeing good level of activity across our network. Clients are continuing to move forward with purchases, remortgages and protection conversations, but they are taking a more proactive approach and seeking advice earlier in the process. That is helping drive business and speed up decisions where clients want certainty before products change or affordability shifts further.
It’s another reminder of the value brokers bring in uncertain conditions. Lender pricing and criteria move quickly in these moments and clients need support to understand their options and act when opportunities arise.”
Richard Pike, chief sales and marketing officer at Phoebus Software, commented:
“A base rate hold was largely expected and already priced in by the mortgage markets, but it remains to be seen where rates will go next. We’ve seen some lenders reducing rates in the past couple of weeks, but if swap rates remain volatile then it could spell bad news for homeowners. Household budgets are already stretched and for those coming to the end of a five-year deal, there could be an unpleasant payment shock.
The Bank is caught in a difficult balancing act. On the one side, there are inflationary pressures fuelled by rising energy prices and rising business costs, while on the other, growth is weak and business confidence is fragile.
The industry must prepare for continued volatility. The priority for lenders is ensuring they have agile systems and real‑time data capabilities to allow them to respond quickly to whatever the market delivers next.”
Frances Haque, Chief Economist at Santander UK comments:
“Given the ongoing uncertainty of the conflict in the middle east and its impact on the economy, it made complete sense that the MPC decided to hold rates today. From the data released last week, we can see the conflict is beginning to have an effect on inflation, which will inevitably be a concern for MPC members.
But, with unemployment falling on one side, and more near-term data showing declining payrolls and wage growth slowing on the other, there’s still a mixed picture being painted in terms of the outlook.
“Despite a somewhat mixed backdrop, the UK housing market remains strong, with both applications and house prices holding steady according to recent HM Land Registry data. Rate cuts across the mortgage market have provided some light relief for borrowers, particularly for those coming off a fixed rate in the next three to six months.
In terms of Bank Rate, what the MPC decide to do next is still very data dependent, but the cuts that markets had originally predicted for 2026 are looking rather unlikely compared to a couple of months ago.”
Emma Hollingworth, Chief Distribution Officer at LSL Financial Services, says:
“The Monetary Policy Committee’s decision to hold interest rates today suggests the Bank of England is keen to see how the situation in the Middle East unfolds before deciding on its next move.
The most prominent threat to the UK economy is the prospect of higher inflation from pressure on energy prices. Even if this does not become a full-blown inflation crisis, the conflict is already affecting the UK mortgage market. Swap rates – the key driver of fixed-rate mortgage pricing – have surged in recent weeks, prompting lenders to reprice or withdraw products almost daily. That has left just a handful of sub-4% deals, a blow to the estimated 1.8 million borrowers reaching the end of fixed-rate mortgages this year.
With the outlook highly uncertain, brokers will be crucial in guiding borrowers. Proactively contacting clients coming to the end of their deals allows them to understand pricing and product availability, make informed decisions, and be better positioned to navigate any further market volatility.”
Martin Simms, Distribution Director at Molo Finance, commented:
“The decision to hold rates feels in line with what most in the market were expecting. Recent inflation data has moved higher again, but not in a way that gives the Bank a clear direction, and with wider economic pressures still in play, a steady approach certainly makes sense.
For brokers and landlords, the bigger point is that uncertainty remains. We have seen a lot of movement in pricing across the market in recent months, and that can make it difficult to plan with any real certainty, particularly during what is already a busy refinancing cycle. Even without a rate move, there is still plenty for borrowers to think through.
In this environment, flexibility is important. Tracker products are starting to play a bigger role for some borrowers who are not quite ready to commit to fixed rates, and having those routes available is key while the market continues to settle. It’s about giving brokers a range of solutions rather than a single answer.”
Matt Smith, Rightmove’s mortgage expert says:
“A Bank Rate hold is actually positive news today, particularly for those on a tracker mortgage, given a rate increase was on the table. It’s probably the most uncertain we’ve been about how the Bank will vote for a while and reflects how uncertain the geopolitical landscape is right now, and how up and down swap rates have been.
Despite the uncertainty, lenders have been competitive where possible with moderated rate cuts to support what is typically one of the busier points of the home-moving calendar. However, margins are tight, and if swap rates increase further, we could see some of these moderated cuts from lenders either paused or even partially rolled back. What happens next will mostly depend on how the situation in the Middle East continues to play out, which, as we’ve seen, can change almost daily.”
Daniel Austin, CEO and co-founder at ASK Partners, said:
“The Bank of England’s decision to hold rates at 3.75% reinforces the ‘higher for longer’ reality facing households and property markets. While policymakers continue to signal potential cuts later this year, the recent uptick in inflation and renewed geopolitical tensions in the Middle East underline just how uncertain the path back to target remains.
Any escalation that pushes up energy prices or market volatility could easily complicate the disinflation story, leaving confidence fragile among buyers and developers alike. Mortgage pricing has improved, and further easing would be welcome, but it will take time for meaningful relief to filter through to household finances and borrowing costs.
In the meantime, mainstream housing activity is likely to remain subdued, with capital continuing to favour structurally resilient, income-led sectors such as build-to-rent, co-living, logistics, storage and data centres, where persistent undersupply continues to support demand.
A clearer downward trajectory for inflation, alongside rates moving sustainably lower, would be the real catalyst for unlocking stalled projects. Until then, disciplined, income-focused and lower-leverage strategies offer investors a pragmatic way to stay active while managing risk in an increasingly uncertain macro environment.”
Enzo Mora, CEO and founder of The Mortgage Brain comments:
“It was the right decision to hold interest rates while lenders and borrowers remain in short-term limbo. It’s about holding your nerve and advising clients of the full range of options on offer, especially for those coming off a fixed rate in the next six months. Lenders have already factored in interest rate fluctuations, so they have been reducing rates.
We’re working with our house building partners to get new build buyers across the line by accessing lower cost mortgages and deposit schemes. For landlords keeping their options open in light of the new Renters’ Rights Act that becomes law from May 1, there are good low two-year fixed rates for buy-to-let mortgages currently available. And for renters aspiring to be homeowners, brokers can still find affordable products.”
Jodi Spreadbury, Senior Mortgage and Protection Broker at The Mortgage Broker, said:
“The Bank of England holding at 3.75% offers continuity, but it should not be mistaken for a return to a settled mortgage market. Lenders do not price purely off the base rate, and borrowers have already seen how quickly sentiment and pricing can shift.
For homeowners and buyers, a hold would be useful in terms of stability, but the real message is still the same as what we always say. Review your options early and focus on what is suitable and affordable for your own circumstances over the course of the term, not just based on the immediate interest rate.”
Charles Resnick, Chief Finance Officer at Afin Bank, commented:
“The Bank of England has held the Base Rate at 3.75% and the possibility of cuts to the interest rate has been pushed further out. The near-term outlook remains uncertain and the Monetary Policy Committee (MPC) will need to assess the impact of the energy price shock on inflation.
In its March meeting, held just after the start of the war in the Middle East, the MPC voted unanimously to hold rates, replacing previous thoughts of a cut to the Base Rate. Growth remains weak, even if near-term data have been a little firmer than expected, as labour market conditions soften and pay growth cools, resulting in slack in the economy continuing to build.
For borrowers it’s not necessarily all bad news as lenders are likely to stay cautious, with higher swap rates and policy uncertainty keeping pricing disciplined.”