The Bank of England has maintained the base rate at 4% after today’s Monetary Policy Committee (MPC) meeting.
The decision follows the MPC’s move to hold in September.
Tracker and variable mortgage customers will see no immediate change, while fixed rate pricing will remain driven by market funding and swap movements.
The latest inflation figure stands at 3.8%, lower than earlier peaks but still above the 2% target.
Recent GDP and activity indicators suggest subdued momentum across the economy, with the effects of previous rate increases continuing to influence spending patterns and credit conditions.
Attention now shifts to forthcoming inflation and wage data, which will guide expectations ahead of the next MPC meeting.
Reaction:
Nicholas Mendes, mortgage technical manager at John Charcol:
“The Bank of England has kept Bank Rate at 4.0%, choosing patience over pre-emption. Inflation is falling faster than expected, with CPI at 3.8%, wage growth easing, and the labour market clearly softening. However, the Monetary Policy Committee has opted to wait for the Chancellor’s Budget later this month, where up to forty billion pounds of tax rises could alter the balance between growth and inflation.
“It is a pragmatic decision by the Bank, knowing that tighter fiscal policy could do part of its job for it, pulling inflation lower in 2026 without the need for another rate cut now. For the moment, policymakers appear comfortable that monetary policy is restrictive enough and that disinflation is well established across the economy.
“Holding steady also gives the Bank time to test whether the current slowdown is temporary or something deeper. Consumer spending remains subdued, business investment patchy, and mortgage approvals are only just starting to recover. By waiting, the Bank can see whether underlying momentum stabilises through winter before deciding whether to ease in the new year. For borrowers, it is a sign that while we are past the peak, the Bank is determined not to move faster than the data justifies.”
Alpa Bhakta, CEO of Butterfield Mortgages:
“Hopes of a fourth cut have been dashed, and for the Prime Central London (PCL) market, this comes at a challenging time. A rate cut could have provided the impetus that some PCL buyers need to execute their investment plans with confidence.
“This is especially true at present, with the looming Autumn Budget causing understandable caution and hesitation among buyers. As lenders, tailored support will continue to be key in supporting investors as they navigate the market in the lead up to the announcement on 26 November.”
Tim Parkes, CEO of RAW Capital Partners:
“There had been some predictions that, with the economy experiencing such sluggish growth, the Bank of England might take the bold move to cut the base rate today. In reality, such a move always looked highly unlikely. Inflation, though seemingly under control, remains frustratingly sticky at close to 4%, while the uncertainty surrounding the upcoming Autumn Budget favours a more conservative approach from the MPC.
“The hope is that rate cuts will follow. Action has to be taken to boost spending and investment, in turn injecting fresh life into the economy. So, once the Budget is delivered, and if inflation does drop further, the base rate could resume its steady decline, which would undoubtedly provide a major boost to the property market.
“With economists expecting two or three base rate cuts over the next 12 months, there is a sense that many buyers and investors are sitting tight as they wait for the cost of borrowing to fall; once that happens, we may well see a flurry of action. Lenders and brokers must be poised to meet any uptick in demand, but for now the focus will undoubtedly remain on helping borrowers to understand potential implications of the Budget once the Chancellor makes her announcement in three weeks’ time.”
Paresh Raja, CEO of Market Financial Solutions:
“No pleasant surprises today then. With consumers, investors and businesses all braced for the Budget at the end of the month, a cut to the base rate had the potential galvanise the property market. But there is simply too much political and economic uncertainty at present.
“So, for now, we have to be patient, focus on supporting brokers and borrowers to navigate complexities in the market, and be ready to adapt post-Budget so the property sector can push forward.”
Raphael Benggio, director of bridging at MT Finance:
“The decision by the MPC to maintain interest rates at 4 per cent was expected. While inflationary pressures seem to be stabilising, maintaining rates also provides some reassurance to investors and the property market in general.
“Although a rate reduction before Christmas would be a welcome boost to the economy, it could be that the MPC are holding out until the Autumn Budget is delivered before making a decision regarding cuts. However, we doubt this would form the basis of their decision and would suggest that the biggest driver would be whether inflation can reduce further.”
Amy Reynolds, head of sales at Richmond estate agency Antony Roberts:
“While market expectations for a base rate cut had risen, the Bank of England has remained cautious and held it at 4 per cent for now.
“Regardless of the decision made today, we’ve recently seen lenders introduce new products and policies aimed at higher-income borrowers and larger loans, which is encouraging for the London market – particularly in the Richmond Borough.
“Although many have spoken about a market where not much is going on, which meant we were expecting a very quiet November in the run-up to the Budget, that hasn’t been the case. We’ve agreed a high number of sales – mainly freehold homes – with prices reaching up to £2.5 million.
“It may be that some buyers are moving now to hedge their bets in case the Budget proves less property-focused than expected. A measured Budget and a rate cut early in 2026 would be the ideal combination to unlock more momentum in the market.”
Jeremy Leaf, north London estate agent and a former RICS residential chairman:
“This time around the Bank had a more difficult decision to make than on previous occasions. Members of the interest-rate setting committee had to reconcile lower-than-expected inflation and wage growth with the likely impact of now-expected tax cuts in the Budget.
“The dangers of cutting rates further at this point could potentially reignite inflationary pressures which the Bank will be keen to avoid.
“As far as the housing market is concerned, activity has been in the doldrums for the past month or so since speculation about the Chancellor’s intentions intensified. However, the direction of travel for interest rates appears downwards which will give a boost to those sitting on the fence as well as others who are contemplating the end of fixed-rate mortgages at previously-agreed rock-bottom rates.”
Andrew Lloyd, managing director at Search Acumen:
“Today’s decision to hold interest rates at 4% reflects the Bank of England’s continued caution in balancing growth against inflation, that, while stable, remains elevated at 3.8%. Stability in borrowing costs is welcome, particularly as the market awaits the Chancellor’s Budget later this month, but holding rates steady will do little to reinvigorate activity across the property market in the short-term.
“The government is consistently missing its housing targets, where an interest rate cut would have been a major boost to help UK developers reduce borrowing costs, stimulate buyer demand, improve project viability, and increase developer confidence. Lower financing costs to ease these margins, particularly with smaller housebuilders, could have been a real win at a particularly vulnerable time for the sector.
“Looking ahead, for real estate investors, dealmakers, and lenders alike, confidence will depend on clear signals from both monetary and fiscal policy. The Budget could be that signal, but until then the cautious ‘wait and see’ mindset of many market participants is likely to persist. If inflation starts to move downwards, we could see further monetary policy easing later this year, which, paired with political stability and renewed investor appetite, would help unlock a more active property market heading into 2026.”
George Holmes, managing director of Aurora Capital:
“Holding rates today might suit the Bank’s cautious instincts, but small businesses can’t afford to wait. Growth is currently on the floor, borrowing is still expensive, and confidence is at rock bottom, so what firms really needed was a clear signal that rate relief is coming.
“Inflation is still higher than the Bank would like, but it’s flatlined and should start coming down. Hiring is slowing, pay rises are easing off, and the government is about to raise taxes in the Autumn Statement.
“All of that means the economy is already slowing, so the Bank didn’t need to sit on its hands as well. Keeping rates high for too long risks making next year even tougher than it needs to be.
“It’s unlikely that a gentle rate cut today would have reignited inflation. It would have restored some confidence and given small firms a reason to look ahead. The longer the Bank delays cuts, the more lasting the damage to business investment and hiring will be.”
Rob Clifford, CEO of Stonebridge:
“The Bank of England’s decision to hold rates today suggests that it is not taking the recent good news on inflation for granted. While inflation held steady in August, it’s clear that the Monetary Policy Committee’s mindset is to proceed with caution.
“However, we believe there is a strong chance that the MPC will deliver borrowers an early Christmas present by cutting rates at next month’s meeting, especially if economic growth continues to disappoint. That would likely intensify the recent price war being waged among lenders, leading to further reductions in mortgage rates and further boosting consumer confidence.
“For advisers, now is the time to re-engage with customers approaching the end of their deals. Falling rates can create consumer confusion, just as much as rising rates, so acting early gives them the best chance of securing the deal that suits their circumstances.”
Simon Webb, managing director of capital markets and finance at LiveMore:
“The Bank of England’s decision to hold the base rate at 4% is not unexpected considering the current economic climate. With headline inflation trending lower than expected some analysts had predicted a quarter point drop, and the voting split shows how close the decision was. But with inflation still above target and wage growth high, the Bank has held firm. With the next MPC meeting on 18th December, however, borrowers will be hoping for an early Christmas present with a rate reduction.
“For older borrowers, many of whom are on fixed incomes, stability in the market is what’s required so they can make longer-term decisions about their financial needs. However, with Rachel Reeves this week dropping her biggest hint yet that tax rises are inevitable, it will be a nervous wait to see what comes out of the budget.
“At LiveMore, we’re committed to supporting this demographic with lending solutions that go beyond traditional criteria. We want to see the Government support a more flexible lending environment that recognises the diversity and complexity of later life finances. This includes smarter regulation, innovation in product design, and a shift in the industry mindset about what older borrowers can and should be able to do.”
John Phillips, CEO of Just Mortgages and Spicerhaart:
“Given the central bank’s penchant for caution, a cut to the base rate felt unlikely this close to the Budget. There was certainly scope for one though with recent inflation data performing better than expected and growing confidence that it has likely reached its peak. Add in the gloomy economic picture and you can certainly make a strong argument. As has been the case in recent months, the Budget is the elephant in the room and the unpredictability surrounding it is understandably irking rate setters. Whether we’ll see an early Christmas present from the MPC next month is still hard to predict with any real confidence.
“Even so, there have been plenty of positive headlines coming out of the mortgage market with a drop in rates and cuts from lenders in all areas of the market. Resilient mortgage approvals and transaction figures show many borrowers are still getting on with the task at hand – despite much noise surrounding the Budget. Brokers should absolutely take note and be there to provide the necessary advice and support. Above all, we shouldn’t underestimate the critical role we play in nurturing confidence and facilitating transactions.”
Neil Rudge, chief banking officer, commercial, at Shawbrook:
“Holding rates steady for a third straight month will disappoint UK SMEs, many of whom had expected a shift towards easing after inflation fell faster than forecast. With borrowing costs still at their highest level in over a decade, confidence remains fragile and investment cautious.
“But there is funding available for businesses that want to keep growing. Specialist lenders continue to have both the appetite and the expertise to structure finance around the needs of ambitious firms. The challenge now is restoring the confidence to use it.
“The Budget must send a clear signal that business investment and access to finance are firmly back on the government’s agenda. It presents an opportunity to give UK SMEs real support. Measures that could help include reforms to business rates, steps to improve access to finance, easing regulatory and reporting burdens, and incentives to encourage investment such as enhanced capital allowances. Taken together, these actions would give businesses both the
space and the confidence to invest, grow, and create jobs.”
Charles Resnick, chief finance officer at Afin Bank:
“No surprises in today’s decision by the Bank of England to hold the base rate, but you can’t escape the shadow of the upcoming Budget looming over proceedings.
“Following the unusual approach by Chancellor Rachel Reeves to make a “Scene Setter” speech this week ahead of the Budget, tax increases are expected in the statement on 26 November, which would break the government’s manifesto pledges.
“What kind of tax rises and who they would impact the most is still unknown, as is any insight into other measures she will announce. As a result, economists and the markets are holding their breath, so a further base rate change in December can’t be ruled out, although it is looking more likely for next year.”
Nick Hale, CEO of Movera:
“Given Rachel Reeves has been unable to rule out raising taxes in the Autumn Budget, a base rate cut would have provided some relief for borrowers and introduced some much-needed momentum into the market, especially with flat inflation.
“While transaction figures persevere, the latest data from Zoopla highlighted that some prospective buyers are continuing to hope that good things come to those who wait.
“The home-moving sector mustn’t sit back, however. We have it in our power to inject our own momentum by doing what we can to speed up property transactions.
“Streamline your processes. Reflect on your use of digital tools and where these can be integrated. Request those surveys straight away. Collaborate with parties on the other side of transactions, don’t slow each other down. The government’s proposed reforms are a step in the right direction, but we can’t wait for change to fall into our laps. We need to act now.”
Sarah Pennells, consumer finance specialist at Royal London:
“The Bank of England has opted for caution, holding rates steady as inflation remains flat. For now, the Bank is holding off any changes waiting to gauge the Budget reaction and broader economic trends before making its next move.
“The decision will disappoint many mortgage holders hoping for some relief. Our research reveals that over half (53%) of mortgage holders are paying on average £327 more a month compared to a year ago, while 13% of mid-lifers describe themselves as in or near financial crisis*.
“For savers, the rates hold offers some short-term stability. However, with Budget speculation – including rumoured ISA reforms that could cut the Cash ISA allowance – now is a good time to review savings strategies. Exploring investment options like stocks and shares could help make money work harder, particularly if inflation remains sticky. And with savings rates still relatively high, shopping around for competitive accounts remains essential.”
Ryan McGrath, director of second charge mortgages at Pepper Money:
“Today’s decision by the Bank of England to hold the base rate at 4% will come as a disappointment to current and prospective homeowners hoping to reduce borrowing costs. The base rate hasn’t fallen below 4% since 2022, and while those on tracker mortgages would have felt immediate relief from a rate cut, anyone looking to remortgage or purchase a home will continue to face pressure from elevated borrowing costs.”
“With a rate cut unlikely before the end of the year, borrowers on historically low fixed rates will want to preserve them for as long as possible. As a result, we expect more homeowners to continue to turn to second charge mortgages as a way to tap into their equity or consolidate debts without distributing their existing first charge mortgage.
“This trend is already reflected in recent market data, which shows the second charge sector is on track for its strongest performance in 18 years.”
Ben Thompson, deputy CEO of Mortgage Advice Bureau:
“It’s no surprise that the Bank of England has acted with caution, choosing to hold the base rate at 4%. This decision breaks the streak of quarterly rate cuts, and with the Autumn Budget fast approaching and meaningful tax rises likely to be imminent, the Bank is clearly waiting for certainty on the inflationary outlook before making any further moves. Homebuyers and movers should therefore anticipate a stable rate environment for the time being.
“While the headline rate may feel elevated, the reality on the ground is much more encouraging. Three years of economic adjustment have delivered a much brighter picture: house price growth has flattened, wage growth in real terms is on the rise, and borrowing power is significantly better than it was 12 to 24 months ago. With lenders offering a wealth of innovative products, there are countless opportunities for prospective buyers to secure a competitive deal.
“Whatever your homebuying plans, the message is simple: don’t delay. Playing the waiting game for one or two marginal base rate cuts is a gamble. If the economic confidence that the Bank is waiting for truly takes hold, a surge in demand could see house prices accelerate quickly. This essentially means that any small savings made on a lower mortgage rate would be eaten up by a higher property price. If you’re thinking of buying or moving, now is the time to act before market momentum returns fully.
“As always, the importance of speaking to a mortgage broker cannot be understated, as they can provide bespoke guidance based on your financial circumstances, and help you navigate the current market to secure the right deal.”
Steve Cox, chief commercial officer at Fleet Mortgages:
“While the MPC chose to hold BBR at 4% today, the trend in mortgage pricing tells a more optimistic story. Mortgage rates have been falling in recent weeks and we expect that to continue across November. Regardless of the MPC’s decision, buy-to-let lenders, including Fleet, have been cutting rates as swaps and funding conditions improve, and this provides an opportunity for advisers and landlord clients to engage now rather than wait.
“With the Renters’ Rights Act now passed into law, landlords face a fresh set of compliance obligations and responsibilities that are likely to come with added costs.
“Whether it’s meeting new minimum standards or adjusting to tenancy reforms, financial planning is essential, and any savings achieved through more competitive mortgage pricing will help landlords manage these pressures. Lower mortgage costs won’t just ease affordability, they’ll support long-term investment in professional, compliant portfolios.”
Tony Hall, head of business development at Saffron for Intermediaries:
“The Bank of England’s decision to hold the base rate at 4% follows one of its most finely balanced policy meetings in months, as easing inflation and a cooling labour market fuelled debate over the need for lower borrowing costs. With this being the final rate decision before the Autumn Budget, many will see it as a signal of cautious stability amid shifting economic conditions.
“With some lenders already trimming fixed-rate mortgage pricing, borrowers may start to see greater choice in the months ahead if price pressures continue to ease. While market activity remains measured, signs of renewed confidence suggest the housing sector could see a modest uplift if Budget outcomes prove less disruptive than feared. In this environment, tailored financial advice is more valuable than ever for anyone planning their next housing move.”
Richard Pike, chief marketing and sales officer at Phoebus:
“We expected the Bank of England to hold the base rate at 4% as it attempts to balance wage and price inflation and economic stimulus. While the most recent CPI data showed inflation was lower than expected, it remains well above the Bank’s 2% target, so the MPC’s decision is no surprise. The good news for borrowers is that mortgage rates have fallen in recent weeks, with the average rate dropping below 5% this week for the first time since September. This is no doubt in anticipation of future rate reductions and lenders competing to attract new business ahead of year-end. With one more MPC vote this year, it remains to be seen whether the Bank will serve up an early Christmas present for the market.
“What is certain however is that Labour will be increasing taxes, with Rachel Reeves warning in her pre-Budget press conference this week that everyone will have to pay more to repair Britain’s finances. This could have big implications for affordability with many households already struggling with the cost of living.”
Charlie Ambler, co-chief investment officer and partner at Saltus:
“Any forward guidance will likely remain cautious ahead of the Autumn Budget. The Chancellor is expected to announce a wave of tax hikes that could harm economic growth and subsequently provide grounds for a rate cut in December. In the interim, the Bank must uphold its duty to provide certainty and avoid deviating from its slow and steady cutting cycle.
“Investors should be prepared for a more selective market environment, with quality, resilience and income-generation remaining key themes in portfolio construction. While a future rate cut may disincentivise saving and entice investors to take advantage of opportunities in interest rate sensitive sectors and UK equities, investors should remain focused on long-term returns.”
Nick Leeming, chairman of Jackson-Stops:
“The decision to hold interest rates at four per cent reflects the Bank of England’s need to stem inflation with ongoing caution towards economic growth. This wait and see position is one familiar with many homebuyers at the moment, keen to know what the Chancellor’s final decisions are on tax and spending policies before committing to a move.
“However, this might have been an opportunity missed by the Bank of England’s rate setting committee, in which a 25 basis points drop would have given the lending market a much-needed boost during this November lull. If budget tax rises harm growth, we may see interest rates cuts being used in the future to support greater market movement.
“Earlier this week lenders hedged their bets on a rate cut, with Nationwide reducing mortgage rates by up to 0.25 percentage points, offering the lowest two-year fixed rate since 2022. Moves such as this will be welcome by the mortgaged majority, with the hope they won’t be short lived. Some mortgage rates remain more than double the level they were before the pandemic, with house prices rising 26%* during the same period.
“The slow pace of building is also a concern, with chronic undersupply keeping house prices high. Inflated costs and interest rates are impacting growth in the development sector, especially SMEs, leaving government targets unmet. Greater financial headroom may have been a welcome boost to those struggling to make the numbers work.”
Colin Bell, founder and COO of Perenna:
“The average base rate since the turn of the millennium is 3.56%. Go back further and the average only creeps up higher. The reality is that the Bank of England’s base rate is, in historical terms, normal. Rock bottom interest rates were an abnormality in the market.
“This is particularly an issue for those on shorter term fixed rates, for whom the monthly costs can feel challenging but who will still have to remortgage sooner rather than later. The reality is it will likely be a long time before rates drop to the levels seen in the 2010’s, if ever, so they’re better off adjusting to the new status quo and finding ways to give themselves some longer term financial security by opting for long term fixed rate mortgages that give them stable monthly mortgage costs.”
Nathan Emerson, CEO of Propertymark:
“Following four rate cuts since August 2024, today’s decision to hold interest rates reflects the Bank of England’s cautious approach in an uncertain economic climate. Stability can be reassuring for the housing market, giving buyers and sellers a clearer sense of direction after months of volatility.
“However, for many, affordability remains stretched, and the market would benefit from further easing when conditions allow. Sustained rate stability or a gentle reduction in the months ahead would help bolster consumer confidence and keep transactions moving.”
Mark Harris, chief executive of SPF Private Clients:
“There was a slim chance that the Bank of England would cut interest rates this month but ongoing concerns over inflation, which remains steady at 3.8 per cent, and perhaps a bit of wait-and-see as to what impact the Budget has, meant caution prevailed.
“We are encouraged by four members voting for a reduction in base rate to 3.75 per cent and hope more of the Committee come round to their way of thinking in due course, perhaps even as soon as next month. Market expectations are for another rate cut before the end of the year, with the ‘big six’ lenders active in reducing rates in recent days in an effort do drum up business before the year-end. Nationwide is the latest to cut rates for home movers, those remortgaging and first-time buyers with its lowest two-year fix now pegged at 3.64 per cent [up to 60 per cent LTV with £1,499 fee].
“A rate cut today would have been a welcome shot in the arm for the housing market amid much speculation as to what property taxes – and more – will be included in the Budget in three weeks. Despite five rate reductions since August last year, affordability concerns persist with borrowers having to get used to higher mortgage rates. Further rate reductions are necessary to boost not only the housing market but the wider economy.”
Jeff Brummette, chief investment officer at Oakglen Wealth:
“As expected, the Bank of England left rates unchanged this month. While inflation was below expectations in September, the 3.8% reported was still well above target.
“The Bank’s Monetary Policy Committee will need to see a further softening in the labour market, or perhaps a restrictive budget from Chancellor Rachel Reeves later this month, to enable them to resume a programme of rate cutting.”
Andrew Gething, managing director of MorganAsh:
“A few weeks out from the Budget, we shouldn’t be surprised to see the Bank of England hold the base rate. The central bank will be the first to say it wants a full picture before making any cuts and with potential tax rises on the table and clear implications, there are just too many variables. While stability is always welcome, another hold keeps the pressure firmly on households. Improving mortgage rates in recent weeks certainly helps new borrowers and those looking to remortgage, but we mustn’t forget those still feeling that heavy financial burden in a challenging economy and difficult jobs market.
“The launch of the Government’s Financial Inclusion strategy this week is therefore timely. According to new data, up to 1.9 million people are relying on illegal loan sharks to manage unexpected financial shocks or to just get by. With increasing focus from government and regulators, there is real emphasis on industry to tackle low financial resilience and exclusion. On top of real financial vulnerability, there are countless other life events and situational vulnerabilities that are impacting consumers in the current climate. The urgent question is, do we know how many are also our customers? No matter the outcome of the Budget, we must focus our attention on customer vulnerability and making sure we have the necessary processes, platforms and data to ensure we support, not side line, vulnerable customers.”
Mike Randall, CEO of Simply Asset Finance:
“Businesses would have liked to see a rate cut this month given the year they’ve experienced. And while this was always going to be a tight decision, expectations remain strong for a reduction next month.
“Stability offers some reassurance, but SMEs need to see the cost burden fall further and conditions to genuinely improve. Right now, optimism is fragile, and with just weeks until the Chancellor delivers her Budget, the opportunity to strengthen that confidence or weaken it lies in the balance. The right measures could unlock growth and reinforce ambition across the UK; the wrong ones risk stalling momentum at a critical moment. Business leaders now need action, not just reassurance, to ensure this optimism turns into real progress.”
Daniel Austin, CEO and co-founder at ASK Partners:
“With global volatility high and domestic policy in flux, it’s little surprise the MPC has held rates at 4%. With the Autumn Statement approaching and fiscal plans still unclear, policymakers are waiting for greater certainty. For homeowners and buyers, hopes of cheaper borrowing persist, but high fixed-rate mortgages mean meaningful relief remains distant. Inflation is unlikely to hit target this year, keeping mortgage pressures elevated and household confidence weak.
“In property, the decision reinforces a cautious “wait and see” mood. Buyers are pausing and developers holding back amid uncertainty over taxes, build costs, and the broader economy. The proposed cut in affordable housing requirements to 20%, alongside a fast-tracked planning route, could improve scheme viability in London, but high financing costs and thin margins may limit the benefit. Easing planning rules and offering temporary levy relief could help restart stalled sites, though demand-side stimulus will also be needed, through first-time buyer support, stamp duty reform, and incentives for domestic off-plan purchases.
“Resilient segments such as co-living, build-to-rent, and storage continue to attract capital amid tight supply and steady demand. Yet a clear, sustained fall in inflation remains key to unlocking broader investment. If rate cuts arrive at some point in the near future, they could reignite momentum, but until then, only the most agile investors are likely to find opportunity in a cooling market.”
Harriet Guevara, chief savings officer at Nottingham Building Society:
“With the rate held at 4%, but expectations for a cut in December, the end of the year could mark the start of a new chapter for interest rates, and for millions of savers and borrowers.
“For savers, base rate reductions tend to feed through into lower returns over time, so this is an important moment to lock in value where you can. Fixed-rate savings products, especially Cash ISAs, remain compelling while rates are still relatively strong. With further cuts likely on the horizon, it makes sense to act sooner rather than later.
“We’re also watching the Government’s ISA consultation closely. Any reform that limits how much of your allowance can be held in cash would be a blow for everyday savers, particularly those relying on ISAs to build a deposit, save for retirement, or create a financial safety net.
“On the mortgage front, any reduction in the base rate could signal a gradual easing in the cost of borrowing. While we’re unlikely to see an immediate change in mortgage pricing, those coming to the end of fixed deals later this year may find better options opening up. Now is the time to review your finances and be ready to take advantage of changing conditions.”
Andrew Gall, head of savings and economics at the Building Societies Association (BSA):
“Many aspiring homebuyers will be disappointed that the MPC has decided to hold the Bank Rate at 4.00% for another month.
“Despite innovative mortgages from building societies to help those with smaller deposits, and recent regulatory changes giving lenders increased flexibility to support borrowers, mortgage affordability remains one of the biggest barriers to homeownership.
“Our research shows that over half of first-time buyers (54%) say the cost of monthly mortgage repayments is an obstacle to becoming a homeowner. Mortgage repayments for new first-time buyers are now around 30%2 higher than in 2020 (22% of income vs 18%). This has led to the dream of homeownership turning into a sense of defeat, with almost one in three (29%) of those wanting to buy a home believing they never will.
“Whilst CPI Inflation remains high at 3.8%, it has not risen as much as feared and the Bank estimate it has peaked. A cut to the Bank Rate just before Christmas is therefore on the cards, although, policies announced in the Autumn budget will also factor in the MPC’s next decision.”
Jason Tebb, president of OnTheMarket:
“As expected, the Bank of England held interest rates once again at 4 per cent.
“Although inflation held steady at 3.8 per cent in the year to September, the vote was close with the rate setters voting by a majority of five to four to hold rates.
“While this will be disappointing news for those borrowers who had hoped for a rate cut this time around, it may mean the next reduction is not too far off.
“Five rate reductions since August 2024 have been hugely welcomed by buyers and sellers alike, boosting confidence, easing affordability and giving much-needed impetus to the market, particularly since the stamp duty concession ended.
“Whatever the Budget brings later this month, once the atmosphere of uncertainty has lifted there may still be an opportunity for the Bank to reduce rates before the end of the year, delivering a real pre-Christmas boost for the housing market. “
Nick Smith, group managing director at Reward Funding:
“The Bank of England’s decision to hold the base rate at 4% was a close call and is a potential reminder that the financial system in the UK is out of line with businesses ambition. Operational costs are at record highs and margins are under pressure, something that must quickly change. Holding the base rate at 4% causes additional stress for those struggling, let’s hope the correct decision of a reduction is made in December.
“At Reward, we assess businesses on experience rather than relying on algorithms that avoid risk. When the system pauses, we allow ambition to grow. We urge the Monetary Policy Committee to make a different decision at the next review to enable growth and investment across the country.”
Kris Brewster, director of retail banking at LHV Bank:
“A hold at 4% is good news for savers as long as they continue to research the market and make the best use of the higher returns still available. The longer-term expectation is that rates will continue on the downward trajectory which began in August 2024 with some economist outliers believing it could go as low as 3 to 3.25% over the next two years.
“The tough inflationary climate is making it harder than ever to manage everyday spending and rising costs. It’s critical that consumers shop around now for the best rates on their interest-earning current and savings accounts while some providers still offer solid returns. Look for deals that reward your banking choice and work your money harder.”
Nick Henshaw, head of intermediaries distribution at Wesleyan:
“With rates holding steady, many clients will be weighing up whether cash remains the best place for their money, particularly if they’re seeing the real value of savings eroded by inflation. For advisers, this creates a prime moment to explore how diversified investments can offer stronger long-term outcomes than simply staying in cash.
“And with the Autumn Budget approaching, some clients may be holding back from long-term decisions altogether, preferring to wait and see how any tax or allowance changes could affect their wider finances.
“While some clients may still be nervous about market volatility, tools like Wesleyan’s With Profits Fund can help smooth out the ups and downs, providing a more stable journey to long-term growth.
“In this period of relative stability, proactive conversations and clear, tailored advice are key. Advisers can help clients make confident, informed decisions about where to invest next, ensuring their money continues to work effectively for them.”
