The Bank of England has held the base rate in today’s announcement — a decision widely anticipated by economists and the mortgage market alike. While some borrowers may have hoped for another reduction, a hold still provides something extremely valuable: stability.
Recent months have seen growing confidence among buyers and homeowners, helped by a more predictable market environment. A steady base rate adds to that stability, offering a clearer foundation for anyone preparing to buy, move or review their mortgage.
Richard Merrett, Managing Director of Alexander Hall, commented: “Today’s decision to hold the base rate is unlikely to dampen the market momentum that has been building in recent months, and we’ve already seen a noticeable increase in activity following the cut in December, with buyers hitting the ground running in the new year with a renewed sense of confidence.
This confidence has been mirrored by lenders, who continue to offer greater product choice and more flexible terms, particularly when it comes to loan to income multiples.”
What does a Base Rate hold mean for your current mortgage?
If you’re on a fixed-rate mortgage.
Your payments won’t change. However, if you’re approaching the final months of your current deal, it’s a smart time to explore your remortgaging options. Many lenders allow you to secure a new rate up to six months in advance, helping you avoid reverting to a standard variable rate — which can often be significantly higher.
If you're on a tracker mortgage
Your rate moves in line with the base rate, so with today’s hold, your monthly payments stay the same — unless your lender makes separate adjustments.
If you're on a standard variable rate mortgage(SVR)
An SVR isn’t directly tied to the base rate, but most lenders review it after a Bank of England announcement. With a hold, most borrowers should see no change, although your lender may choose to review pricing at their discretion.
How could today’s decision influence your home-buying options?
Even without a rate cut, the mortgage market has remained highly competitive.
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
Need advice? We’re here to help
The mortgage market is moving quickly — even during periods of base rate stability — and lenders continue to adjust pricing and criteria regularly. Speaking with one of our advisers can help you make sense of your options and secure a deal that works for you.
To discuss your plans or check what today’s announcement means for you, book an appointment today with one of our mortgage experts.
