The Bank of England has kept the base rate at 4%, with the MPC voting 5-4, giving the mortgage and property market a bit of breathing space ahead of the 26 November Budget. With inflation still at 3.8% and the next move from Chancellor Rachel Reeves just weeks away, the Bank’s decision to hold fire makes sense. For advisers, buyers and sellers, that means stability for now, but with talk of a cut next month, things could soon start to shift. Many in the industry see this as the calm before a potentially busy end to the year.
Industry experts share their views on what today’s decision means for the mortgage and property sector below:
Simon Webb, managing director of capital markets and finance at LiveMore, commented:
“The Bank of England’s decision to hold the base rate at 4% is not unexpected considering the current economic climate. With headline inflation trending lower than expected some analysts had predicted a quarter point drop, and the voting split shows how close the decision was. But with inflation still above target and wage growth high, the Bank has held firm. With the next MPC meeting on 18th December, however, borrowers will be hoping for an early Christmas present with a rate reduction.
“For older borrowers, many of whom are on fixed incomes, stability in the market is what’s required so they can make longer-term decisions about their financial needs. However, with Rachel Reeves this week dropping her biggest hint yet that tax rises are inevitable, it will be a nervous wait to see what comes out of the budget.
“At LiveMore, we’re committed to supporting this demographic with lending solutions that go beyond traditional criteria. We want to see the Government support a more flexible lending environment that recognises the diversity and complexity of later life finances. This includes smarter regulation, innovation in product design, and a shift in the industry mindset about what older borrowers can and should be able to do.”
Rob Clifford, CEO of Stonebridge, has commented on the Bank of England’s decision to hold rates:
“The Bank of England’s decision to hold rates today suggests that it is not taking the recent good news on inflation for granted. While inflation held steady in August, it’s clear that the Monetary Policy Committee’s mindset is to proceed with caution.
“However, we believe there is a strong chance that the MPC will deliver borrowers an early Christmas present by cutting rates at next month’s meeting, especially if economic growth continues to disappoint. That would likely intensify the recent price war being waged among lenders, leading to further reductions in mortgage rates and further boosting consumer confidence.
“For advisers, now is the time to re-engage with customers approaching the end of their deals. Falling rates can create consumer confusion, just as much as rising rates, so acting early gives them the best chance of securing the deal that suits their circumstances.”
Ryan McGrath, Director of Second Charge Mortgages at Pepper Money, comments:
“Today’s decision by the Bank of England to hold the base rate at 4% will come as a disappointment to current and prospective homeowners hoping to reduce borrowing costs. The base rate hasn’t fallen below 4% since 2022, and while those on tracker mortgages would have felt immediate relief from a rate cut, anyone looking to remortgage or purchase a home will continue to face pressure from elevated borrowing costs.”
“With a rate cut unlikely before the end of the year, borrowers on historically low fixed rates will want to preserve them for as long as possible. As a result, we expect more homeowners to continue to turn to second charge mortgages as a way to tap into their equity or consolidate debts without distributing their existing first charge mortgage.
“This trend is already reflected in recent market data, which shows the second charge sector is on track for its strongest performance in 18 years.”
Nick Hale, CEO of Movera, commented:
“Given Rachel Reeves has been unable to rule out raising taxes in the Autumn Budget, a base rate cut would have provided some relief for borrowers and introduced some much-needed momentum into the market, especially with flat inflation.
“While transaction figures persevere, the latest data from Zoopla highlighted that some prospective buyers are continuing to hope that good things come to those who wait.
“The home-moving sector mustn’t sit back, however. We have it in our power to inject our own momentum by doing what we can to speed up property transactions.
“Streamline your processes. Reflect on your use of digital tools and where these can be integrated. Request those surveys straight away. Collaborate with parties on the other side of transactions, don’t slow each other down. The government’s proposed reforms are a step in the right direction, but we can’t wait for change to fall into our laps. We need to act now.”
Nathan Emerson, CEO of Propertymark, comments:
“Following four rate cuts since August 2024, today’s decision to hold interest rates reflects the Bank of England’s cautious approach in an uncertain economic climate. Stability can be reassuring for the housing market, giving buyers and sellers a clearer sense of direction after months of volatility.
“However, for many, affordability remains stretched, and the market would benefit from further easing when conditions allow. Sustained rate stability or a gentle reduction in the months ahead would help bolster consumer confidence and keep transactions moving.”
Ben Thompson, Deputy CEO, Mortgage Advice Bureau:
“It’s no surprise that the Bank of England has acted with caution, choosing to hold the base rate at 4%. This decision breaks the streak of quarterly rate cuts, and with the Autumn Budget fast approaching and meaningful tax rises likely to be imminent, the Bank is clearly waiting for certainty on the inflationary outlook before making any further moves. Homebuyers and movers should therefore anticipate a stable rate environment for the time being.
“While the headline rate may feel elevated, the reality on the ground is much more encouraging. Three years of economic adjustment have delivered a much brighter picture: house price growth has flattened, wage growth in real terms is on the rise, and borrowing power is significantly better than it was 12 to 24 months ago. With lenders offering a wealth of innovative products, there are countless opportunities for prospective buyers to secure a competitive deal.
“Whatever your homebuying plans, the message is simple: don’t delay. Playing the waiting game for one or two marginal base rate cuts is a gamble. If the economic confidence that the Bank is waiting for truly takes hold, a surge in demand could see house prices accelerate quickly. This essentially means that any small savings made on a lower mortgage rate would be eaten up by a higher property price. If you’re thinking of buying or moving, now is the time to act before market momentum returns fully.
“As always, the importance of speaking to a mortgage broker cannot be understated, as they can provide bespoke guidance based on your financial circumstances, and help you navigate the current market to secure the right deal.”
Tony Hall, Head of Business Development at Saffron for Intermediaries, comments on the BoE interest rate decision:
“The Bank of England’s decision to hold the base rate at 4% follows one of its most finely balanced policy meetings in months, as easing inflation and a cooling labour market fuelled debate over the need for lower borrowing costs. With this being the final rate decision before the Autumn Budget, many will see it as a signal of cautious stability amid shifting economic conditions.
“With some lenders already trimming fixed-rate mortgage pricing, borrowers may start to see greater choice in the months ahead if price pressures continue to ease. While market activity remains measured, signs of renewed confidence suggest the housing sector could see a modest uplift if Budget outcomes prove less disruptive than feared. In this environment, tailored financial advice is more valuable than ever for anyone planning their next housing move.”
Matthew Thompson, head of sales at Chestertons, says:
“As inflation remains above the 2% target and speculations about the impact of the Budget fuel uncertainty over the economic climate, there was little chance of a rate cut today. With only one more Monetary Policy Committee meeting scheduled for this year, a rate cut will be more likely in the first few months of 2026. Despite today’s decision not to cut rates, market conditions are currently in favour of buyers which is resulting in some house hunters rushing to finalise their search before the end of the year.”
John Phillips, CEO of Just Mortgages and Spicerhaart, said:
“Given the central bank’s penchant for caution, a cut to the base rate felt unlikely this close to the Budget. There was certainly scope for one though with recent inflation data performing better than expected and growing confidence that it has likely reached its peak. Add in the gloomy economic picture and you can certainly make a strong argument. As has been the case in recent months, the Budget is the elephant in the room and the unpredictability surrounding it is understandably irking rate setters. Whether we’ll see an early Christmas present from the MPC next month is still hard to predict with any real confidence.
“Even so, there have been plenty of positive headlines coming out of the mortgage market with a drop in rates and cuts from lenders in all areas of the market. Resilient mortgage approvals and transaction figures show many borrowers are still getting on with the task at hand – despite much noise surrounding the Budget. Brokers should absolutely take note and be there to provide the necessary advice and support. Above all, we shouldn’t underestimate the critical role we play in nurturing confidence and facilitating transactions.”
Commenting on a hold in interest rates reinforcing ‘wait and see’ mood, Daniel Austin, CEO and co-founder at ASK Partners, said:
“With global volatility high and domestic policy in flux, it’s little surprise the MPC has held rates at 4%. With the Autumn Statement approaching and fiscal plans still unclear, policymakers are waiting for greater certainty. For homeowners and buyers, hopes of cheaper borrowing persist, but high fixed-rate mortgages mean meaningful relief remains distant. Inflation is unlikely to hit target this year, keeping mortgage pressures elevated and household confidence weak.
“In property, the decision reinforces a cautious “wait and see” mood. Buyers are pausing and developers holding back amid uncertainty over taxes, build costs, and the broader economy. The proposed cut in affordable housing requirements to 20%, alongside a fast-tracked planning route, could improve scheme viability in London, but high financing costs and thin margins may limit the benefit. Easing planning rules and offering temporary levy relief could help restart stalled sites, though demand-side stimulus will also be needed, through first-time buyer support, stamp duty reform, and incentives for domestic off-plan purchases.
“Resilient segments such as co-living, build-to-rent, and storage continue to attract capital amid tight supply and steady demand. Yet a clear, sustained fall in inflation remains key to unlocking broader investment. If rate cuts arrive at some point in the near future, they could reignite momentum, but until then, only the most agile investors are likely to find opportunity in a cooling market.”
Sarah Thompson, Group Financial Services Director, Mortgage Scout
“By holding the base rate at 4%, the Bank of England has maintained the gradual path we anticipated in 2024 – a steady return to normal conditions rather than rapid change. Our forecast at the end of 2024 predicted up to three reductions this year, taking the base rate from 5.25% to around 4% by year-end, and that’s now been achieved. Falling swap rates have already allowed lenders to reduce pricing, with leading two-year fixed deals now starting from around 3.64%. Many lenders are also becoming more agile, adjusting criteria and increasing income multiples to help borrowers access the market more easily.
“With the Autumn Budget likely to focus on tightening the public finances rather than supporting the housing market, borrowers are better off taking advantage of the progress we’ve already seen. Speaking to a broker now and locking in a good rate could make a real difference before the next round of economic changes.”
Commenting on the Bank of England’s base rate decision, Colin Bell, Founder and COO of Perenna, said:
“The average base rate since the turn of the millennium is 3.56%. Go back further and the average only creeps up higher. The reality is that the Bank of England’s base rate is, in historical terms, normal. Rock bottom interest rates were an abnormality in the market.
“This is particularly an issue for those on shorter term fixed rates, for whom the monthly costs can feel challenging but who will still have to remortgage sooner rather than later. The reality is it will likely be a long time before rates drop to the levels seen in the 2010’s, if ever, so they’re better off adjusting to the new status quo and finding ways to give themselves some longer term financial security by opting for long term fixed rate mortgages that give them stable monthly mortgage costs.”