March 20th, 2025
The Bank of England has announced that it will maintain the base interest rate at 4.5%, a decision reflecting its careful approach to balancing inflation and economic stability. While some had anticipated a potential cut, policymakers are keeping rates steady as they monitor the broader economic picture.
What This Means for Mortgage Borrowers
For homeowners, prospective buyers, and those looking to remortgage, this decision provides some short-term stability. However, the mortgage market remains fluid, with rates influenced by lender competition and economic forecasts.
Fixed-Rate vs. Variable-Rate Mortgages
- Fixed-Rate Mortgage Holders: Those on fixed deals won’t see immediate changes, but those nearing the end of their term should start reviewing their options.
- Variable-Rate Mortgage Holders: If you’re on a tracker or variable rate, your payments will remain the same for now, but future rate movements could bring changes.
Expert Insight
Kat Toomer, Associate Director at CMME, shares her thoughts:
“Holding the rate at 4.5% offers borrowers some short-term certainty, but many people are still adjusting to a higher rate environment. With mortgage rates fluctuating, it’s worth reviewing your options early, especially for those with non-traditional income streams like contractors and freelancers.”
Is Now the Right Time to Review Your Mortgage?
While no one can predict exactly when rates may change, reviewing your mortgage now could help you plan ahead. Lenders continue to adapt their offerings, and securing a competitive deal depends on factors such as credit history, deposit size, and employment type.
Final Thoughts
The Bank of England’s decision keeps things steady for now, but economic factors could shift in the coming months. Keeping an eye on rate trends and planning ahead will be key for anyone looking to buy, remortgage, or move in the near future.