Bank of England Holds Base Rate at 4% — What It Means for You

The Bank of England’s Monetary Policy Committee (MPC) has voted by a narrow 5–4 margin to hold the base rate at 4%. This marks the first pause since August 2024 following a series of gradual rate cuts earlier in the year.

Why Rates Were Held

The decision reflects a cautious balancing act by the MPC:

• Inflation is still too high. Although falling, inflation remains above the Bank’s 2% target, standing at 3.8% in September.
• Split views within the committee. Five members supported holding the rate at 4%, while four voted for a cut to 3.75%. Governor Andrew Bailey described the vote as “finely balanced,” with the need for more data before making further reductions.

What This Means for the Property Market

• Mortgage rates stay steady — for now. While lenders have already trimmed some fixed-rate deals, tracker and variable-rate customers will feel no change until cuts happen.
• Affordability remains stretched. Buyers and landlords should remain alert to market changes and seek financial advice to lock in competitive rates where possible.
• Confidence may improve. A period of rate stability can offer reassurance to those looking to buy, sell, or refinance — potentially leading to improved activity as we approach 2026.

At Boydens, we continue to support our clients through market shifts — whether you're a landlord navigating lending conditions or a homeowner planning your next move. Our advice remains clear and grounded, no matter the economic climate.