The Bank of England has once again held the base rate, leaving it at 3.75%. While this may not grab headlines in the same way as a change, a hold can be just as significant for homeowners, buyers and landlords.
In fact, stability is often exactly what the mortgage market needs.
A sign of stability
After a period of rapid increases, a hold suggests the Bank is taking a more measured approach as it monitors inflation and the wider economy.
For borrowers, this can be reassuring. It can provide a sense that we are more likely to be in a more predictable rate environment.
Why mortgage rates don’t always follow the base rate
It’s a common assumption that mortgage rates move in line with the base rate—but the reality is often more complex.
Lenders price their products based on expectations of future rate movements, not just today’s decision. As a result, many mortgage rates have already adjusted ahead of recent holds.
This means:
• Competitive deals may already be available
• Some rates may continue to improve, even without a base rate cut
• Waiting for a headline change isn’t always the best strategy
What this means for you
If you’re remortgaging soon
Now is a key time to review your options. Securing a deal early can protect you against any unexpected shifts, while still allowing flexibility.
If you’re buying
Confidence tends to improve in more stable conditions. Lenders are actively competing, and this can translate into better choice and pricing.
If you’re on a variable rate
A hold means your payments are unlikely to change immediately, while fixed rate options can offer more predictable monthly payments.
What about landlords?
Buy-to-let remains sensitive to rate movements, but a period of stability can help lenders refine criteria and pricing. For landlords, structuring remains key—whether that’s reviewing portfolio performance, borrowing strategy or lender choice.
Expert insight
“Rates will continue to move in both directions, and trying to time the market rarely works out the way people hope. In reality, what makes more of a difference is starting the conversation early—understanding your options, being clear on your goals, and staying flexible. Lenders are constantly repricing, so being prepared puts borrowers in a much stronger position to respond when opportunities arise.”
Richard Merrett, Managing Director at Alexander Hall
The bottom line
While a base rate hold might seem uneventful, it can be a positive signal for the market. Rather than focusing purely on whether rates go up or down, the real opportunity lies in understanding what’s available now—and making informed decisions based on your individual circumstances.
Speaking with one of our advisers can help you make sense of your options and put a clear plan in place — whether you’re reviewing an existing mortgage, considering a move, or starting your home buying journey.
To discuss your plans or understand what today’s base rate decision could mean for you, book an appointment today with one of our mortgage experts.
