The Bank of England has kept Bank Rate at 4% with a majority vote of 7-2, reinforcing expectations that August’s cut will remain a one-off. Inflation is still running above target, and so for mortgage and property advisers, the decision underlines the need to guide clients through elevated borrowing costs, subdued price growth and refinancing challenges. Stability in policy offers reassurance, but a cautious approach to quantitative tightening and ongoing currency swings highlight that market volatility is far from over.
We’ve rounded up expert insight and reaction from across the profession:
Tim Parkes, CEO of RAW Capital Partners, said: “A hold was almost guaranteed today, but it will still come as a disappointment to many borrowers. With inflation flat in August and economic growth faltering, a quiet sense of uncertainty has settled over the market in recent weeks. While holding the base rate may have been the only realistic option on this occasion, the time is coming for the Bank to be bolder in both its decision making and its signposting.
Many property buyers will be hesitant in executing their plans without greater clarity about where interest rates are headed, especially with the potentially challenging Autumn Budget on the horizon. For the past two years, we’ve been told that borrowing costs would fall, only for a few months of stubborn inflation to force the central bank back into a more cautious stance. What investors need is certainty – whether more significant rate cuts are on their way or not.
A rate cut at next month’s meeting looks more likely, but until then onus is on lenders to provide the stability and certainty the market is crying out for.”
Paresh Raja, CEO of Market Financial Solutions, said: “At the start of the year, the commonly held view was that the Bank of England would cut the base rate four times in 2025. So far, there have been three cuts, so although there will be some frustration among homebuyers and property investors that there was not a further reduction today, it’s important we see the bigger picture. A fourth cut for the year may well come when the MPC meets again on 6 November, and either way, the base rate has come down 1% in the past year or so.
We are seeing a greater sense of stability in the property and mortgage markets, with rates heading in the right direction and house prices continuing to grow at a steady pace. That said, irrespective of what interest rates do, the Autumn Budget is looming large overhead. There’s so much speculation about tax changes, and particularly reforms to how property purchases (or property ownership) are taxed, that buyers and sellers alike are going to feel unsettled. We cannot wait until the Chancellor’s speech on 26 November to gain clarity on this; the sooner the Government can start to communicate it’s planned reforms, the better for everyone.”
Richard Pike, chief marketing and sales officer at Phoebus, says: “While inflation was not quite as high as some anticipated yesterday, it remains above target and continues to weigh on households and businesses. Against that backdrop, it’s little surprise the Bank has held its line and the market has largely priced in today’s decision. The bigger question now is whether we will see another cut before the end of the year. That prospect will rest heavily on the signals coming out of November’s Budget, which could determine how quickly confidence returns to both households and industry.”
Rob Clifford, Chief Executive of mortgage and protection network Stonebridge, comments:
“The Bank of England’s decision to hold rates today is proof of its increasingly cautious stance in the face of resurgent inflation. The spectre of 2022, when prices spiralled, still looms large for the Monetary Policy Committee – and it is clear it is determined not to repeat exposure to that risk, even though some regard it as remote.
That means it could be some time before we see borrowing costs fall again. Markets now put the odds of a cut this year at just one in three, with the next quarter-point reduction not expected until spring 2026.
That will disappoint some borrowers holding out for further cuts before switching deals. But conditions have improved significantly over the past 12 months to the great advantage of most borrowers. Mortgage rates are around 50 basis points lower than a year ago, thanks to cheaper funding and fierce lender competition. That means there are plenty of attractive options on offer to those who need to refinance before the end of the year.
For advisers, today’s decision is another prompt to not only engage early with customers coming up to refinance but to reengage with those who may have opted to wait – after all, only 61% of eligible borrowers who could refinance in H1 did. They will all need clear guidance to weigh the different products on offer and secure the deal that best fits their circumstances.”
Ben Thompson, Deputy CEO, Mortgage Advice Bureau comments:
“The Bank of England’s decision to hold the base rate at 4% comes as no surprise, aligning with its recent commitment to taking a gradual and cautious approach to future rate cuts. While another cut before the end of the year isn’t off the table, the Monetary Policy Committee’s primary focus remains on getting inflation firmly under control.
As always, bigger picture thinking is essential. Despite the current stability in interest rates and a wealth of innovative mortgage options, our research indicates that 27% of renters still feel homeownership is a pipedream. In actual fact, taking that first step onto the property ladder may be more achievable than you think. This is where expert guidance can make all the difference: a mortgage broker can help you navigate the market with confidence, and secure a deal that aligns with your financial situation.”
Simon Webb, managing director of capital markets and finance at LiveMore, comments: “The MPC’s decision to hold the base rate at 4% has been widely expected as the Bank juggles persistently high inflation and weak growth. While borrowers will always welcome cuts, this stability gives lenders and intermediaries the space to plan with greater confidence.
All eyes will now be on November’s Budget and the impact that might have on the housing market and the potential for further rate cuts before the end of the year. Later life lending is set for continued growth. Increasing demand and awareness create clear opportunities to help older borrowers with solutions designed to meet their individual needs.”
Matt Harrison, customer success director at Finova Broker, said: “A further base rate cut today was always unlikely, but inflation tracking below the Bank of England’s forecast could indicate a potential cut in November.
However, with no guarantee, brokers with clients erring on the side of caution will need to manage expectations carefully. With other factors like the Autumn Budget in the mix, those waiting for an interest rate cut could end up waiting well into the new year.
Communicating regularly with your clients will be the key to affirming your position as a trusted adviser. Ensuring you have the tools in place to streamline processes and free up your time to give the client your focus is the challenge. At Finova Broker, we offer a CRM system designed specifically to meet the day-to-day needs of brokers, enabling optimum process efficiency and putting relationship building back on the agenda.”
Ben Thompson, Deputy CEO, Mortgage Advice Bureau:
“The Bank of England’s decision to hold the base rate at 4% comes as no surprise, aligning with its recent commitment to taking a gradual and cautious approach to future rate cuts. While another cut before the end of the year isn’t off the table, the Monetary Policy Committee’s primary focus remains on getting inflation firmly under control.
As always, bigger picture thinking is essential. Despite the current stability in interest rates and a wealth of innovative mortgage options, our research indicates that 27% of renters still feel homeownership is a pipedream. In actual fact, taking that first step onto the property ladder may be more achievable than you think. This is where expert guidance can make all the difference: a mortgage broker can help you navigate the market with confidence, and secure a deal that aligns with your financial situation.”
Nick Hale, CEO of Movera, commented: “This move was expected by the MPC, despite yesterday’s news that inflation did not hit 4% as forecast. With ONS data also confirming this week that the jobs market has continued to cool, a further base rate cut would be beneficial in November. But only time will tell whether the Autumn Budget is likely to impact spending habits and derail the Bank of England’s inflation projection – pushing the prospect of another cut back into 2026.
In the meantime, for brokers and conveyancers, it’s important that transactions keep moving. Clients will be looking for clarity on whether now is the right time to move or remortgage. A hold provides a period of stability – some breathing space for brokers to prioritise building client relationships and providing that much needed advice and guidance. Likewise for conveyancers, now is the time to focus on making headway with transactions and streamline your key processes. As if inflation turns in the coming months and the base rate falls with it, efficiency will be the only way to stay afloat in a buoyant market.”
John Phillips, CEO of Just Mortgages and Spicerhaart, said: “Even with the shock news on inflation yesterday, a hold on the base rate comes as no surprise. We know the central bank prefers its careful, gradual approach to monetary policy and with a cut last month, stubborn inflation and fierce headwinds at home and abroad, they are not likely to deviate just yet. Whether this leads instead to a November cut is still too early to call – while the economy is stagnating and needs an urgent boost, we just don’t know yet if inflation has peaked and what impact the upcoming Autumn Budget will have.
This week’s news is more likely to deliver a correction, rather than a dramatic change in mortgage rates – with swap rates creeping up recently. The encouraging thing for us that in the main, buyers and sellers don’t seem to be holding off on their plans with good business levels across both estate agency and financial services. While the picture ahead is still unclear, brokers are continuing to deliver real value to clients in navigating the market today – exploring options, nurturing confidence and providing a five-star service.”
Lee Williams, National Sales Manager at Saffron for Intermediaries comments:
“Today’s decision to hold the base rate reflects continued caution as the Bank of England looks to balance stubborn inflation with wider economic uncertainty.
For borrowers, the picture remains mixed. Some lenders have raised mortgage rates ahead of the Autumn Budget, while others are cautiously easing lending rules and criteria, a shift that is helping affordability for those hoping to step onto the property ladder.
Against this backdrop, expert advice is crucial for anyone considering their homeownership options.”
Commenting on the Bank of England’s decision to maintain interest rates, Colin Bell, COO at Perenna said:
“The Bank of England’s decision to maintain the interest rate at 4% reflects persistent concerns about UK inflation, which remains above target with consumer prices rising yet again. It makes any likelihood of mortgage rates dropping this side of Christmas extremely slim, with thousands of borrowers facing a sharp reset in repayments as they remortgage, potentially adding hundreds of pounds to monthly outgoings.
This will be a harsh reality for households already stretched by higher living costs. The ripple effect could be profound – affordability could worsen despite measures recently introduced to improve stress testing and hopeful first-time buyers are priced out or forced to delay purchases, creating a subdued market cycle that in turn reduces transactional activity. We have to move away from short-termism if we are ever going to shield the market from such uncertainty. Getting people access to longer-term fixed rate products can ensure homeownership remains achievable with less fluctuation and less vulnerability to the need for remortgaging. Improving borrower and lender resilience in this way will be critical to restoring movement to the UK housing market.”
Daniel Austin, CEO and co-founder at ASK Partners, said: “With global volatility high and domestic policy still in flux, the MPC is holding steady. Markets are still pricing in a cut before year-end, but with the Autumn Budget looming and an uncertain economic background, policymakers are unlikely to move until fiscal plans are clearer.
“For homeowners and buyers, the hope of lower borrowing costs lingers, yet persistently elevated fixed mortgage rates mean relief is not imminent. With inflation unlikely to return to the 2% target this year, mortgage pressures look set to persist. Investors and developers will also be watching closely. Resilient sectors such as co-living, build-to-rent and storage continue to attract capital thanks to tight supply and strong demand, but a stable downward inflation trend is critical to unlocking broader activity. Should the predicted BoE cuts arrive, they could act as a spark, but for now, only the most agile investors may find opportunities in a cooling market.”
