Following the Bank of England’s decision to hold the base rate at 3.75%, the mortgage market enters a period of watchful stability. John Fraser-Tucker, Head of Mortgages at Mojo Mortgages, explains what this means for borrowers: fixed rates are likely to stay largely flat, tracker and variable payments remain steady, and securing a deal now with a safety net strategy can protect against future market shifts.
“Following the Bank of England’s decision to maintain the base rate at 3.75% today, the mortgage market enters a period of watchful stability. While some had hoped for a follow-up to December’s cut, a slight uptick in inflation to 3.4% has prompted a more cautious “wait and see” approach from the Monetary Policy Committee.”
What this means for consumers looking for a mortgage:
- Fixed-Rate Borrowers: “Don’t expect a dramatic shift. Lenders have already priced in much of the current economic outlook, so fixed rates are likely to remain relatively flat in the coming weeks.”
- Tracker & Variable Rate Holders: “Your payments will remain unchanged for now, staying at the lower levels established after the December cut.”
- The “Safety Net” Strategy: “With the next potential move not expected until March at the earliest, the priority remains protection. Our Rate Check Promise continues to be vital; it allows you to secure a deal now while ensuring that if lenders sharpen their pricing before your completion, you won’t miss out.”
The Bottom Line:
“The market is currently in a state of ‘cautious discipline’. While we aren’t seeing a fresh drop today, the environment remains significantly more favourable for first-time buyers and remortgagers than it was this time last year.
In a period where the base rate remains steady, Mojo’s Rate Check Promise acts as a vital “insurance policy” against market hesitation. While the Bank of England may hold steady, individual lenders often adjust their pricing independently to remain competitive or react to broader economic shifts. By securing a deal now, you lock in a “safety net” rate that protects you if the market unexpectedly tightens, while Mojo’s automated daily checks ensure that if your lender drops their price for your specific deal before you complete, you can be moved onto the lower rate. This removes the gamble of trying to perfectly time your application, providing the organic reassurance that you won’t be left behind on a more expensive product if more competitive deals emerge in early 2026.”
