What today’s Bank of England decision means for mortgage customers (and first-time buyers)

The Bank of England has kept the Base Rate at 3.75%. In plain English: borrowing costs haven’t been pushed up today, but the Bank is still cautious because inflation is expected to stay higher for a while, largely due to energy prices.

What this means if you already have a mortgage

· Tracker mortgages: Your rate is usually linked to the Base Rate, so a hold means your monthly payment shouldn’t change because of today’s decision.

· Standard Variable Rate (SVR): Lenders don’t have to move SVRs in line with the Base Rate, but a hold generally means less pressure for SVRs to rise.

· Fixed-rate mortgages: Your rate won’t change during the fixed period. What matters is where new fixed rates go next, which depends more on market expectations than the Base Rate alone.

What this means if you’re coming to the end of a fixed rate

·        A hold is helpful, but it doesn’t automatically mean fixed rates will drop immediately.

·        Lenders price fixed deals off longer-term funding costs and expectations. With inflation risks still in the mix, we may see fixed rates remain a bit “choppy”.

·        If your deal ends in the next 3–6 months, it’s worth reviewing options early. Many lenders let you secure a new deal in advance and switch later if pricing     improves.

What this means for first-time buyers

· Affordability checks still matter: Even with the Base Rate on hold, lenders will continue to assess affordability carefully.

· Budget for real-life costs: Energy and household bills can still affect day-to-day affordability, so it’s smart to stress-test your budget.

· Preparation is power: Having documents ready, keeping accounts tidy, and understanding your credit file can make a big difference to both choice and speed.

My practical takeaways

1. A hold is stability, not a signal that rates will fall quickly.

2. If you’re refinancing soon, start early so you can lock something in and stay flexible.

3. First-time buyers should focus on affordability and preparation, not just the headline rate.

If you’d like me to run through your situation and give you a clear plan: what you can borrow, what your monthly payments might look like, and the best lender options for your circumstances, please contact me on 01233516067 or send me a direct message.