The Bank of England has opted to hold the base rate steady, continuing its cautious approach as inflation trends downward but economic uncertainty lingers. While some had hoped for a cut, today’s decision reflects a wait-and-see stance — but that doesn’t mean the mortgage market is standing still.
Richard Merrett, Managing Director of Alexander Hall, commented: “While the Bank of England’s decision to hold the base rate may feel cautious, the underlying mortgage market remains highly competitive, with lenders already adjusting products and criteria to support borrowers.
The recent expansion of the Mortgage Guarantee Scheme, together with broader lending improvements, has already begun to enhance affordability and confidence, particularly among first-time buyers and movers navigating the current environment. Even without a rate cut today, we expect lenders to maintain this positive momentum, keeping the market well-supported as we move towards 2026.”
How will today's decision affect your current mortgage?
• If you’re on a fixed-rate mortgage, there will be no change, but if you’re within the last few months of that deal, it’s worth exploring your options for remortgaging sooner rather than later. You can lock in a new rate early which will help you to avoid reverting to your lender’s standard variable rate. Talk to our mortgage advisers about your remortgage options.
• If you're on a tracker mortgage which effectively 'tracks' the base rate, and your lender hasn't reduced their base rate, your monthly repayments will remain unchanged.
• If you're on a standard variable rate mortgage, and your lender hasn't reduced their base rate, there will be no change to your interest rate or your current monthly repayment amount.
How could it change your options for buying a home?
For those of you with a smaller deposit who are considering buying your first home, it's worth you reading about the new Mortgage Guarantee Scheme.
Compare the options we have available for the best mortgage deals:
If you’re buying your first home: First Time Buyer Mortgage Deals
If you’re moving home: Home Moving Mortgage Deals
If you’re a landlord looking to increase your portfolio: Buy-to-let Mortgage Deals
What should you do next?
Whether you're buying, moving, or remortgaging, now is a great time to explore your options. Lenders are actively competing for your business — not just with lower rates, but with improved criteria and incentives designed to attract new borrowers. Mortgage rates and product availability can shift daily — especially in a competitive market like this – which is why we continuously monitor lender updates to ensure our clients have access to the most suitable and competitive deals available. And as an independent mortgage broker, we have access to exclusive deals and broader product ranges that aren’t available directly through banks. That means we can help you find opportunities that better suit your goals, whether you're looking to borrow more, buy for the first time, or move home.
Discover why 87% of people choose a mortgage broker over their bank when securing a mortgage.*
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* According to Moneyfacts data.
