Bank of England Hold’s Interest Rates at 4%
With the Bank of England holding Interest Rates at 4%, here are some thoughts from the Industry.
Matt Smith, Rightmove’s mortgages expert:
“Ahead of one of the most widely anticipated and discussed Autumn Budgets of recent times, it was unlikely the Bank would go for another interest rate cut so close to the announcement and has opted for stability instead. There’s still a good chance of a rate cut before the end of the year, depending on what is announced in a couple of weeks’ time, and if not then we’re looking at early 2026.
“Some good news is that the cost of financing mortgages has actually come down in recent weeks. We’ve started to see some lenders become more competitive in certain segments of the mortgage market in recent days, and offer some headline-grabbing cheaper rates, as they look to secure some final business before the end of the year.
“The average two-year fixed mortgage rate is now 4.44% – down from 4.95% at this time last year. The downward trend is good, but mortgage rates have come down more slowly than many were predicting at this time last year. Rates have come down even more slowly for five-year products. With the uncertainty surrounding how the upcoming Budget will impact people’s finances, another rate cut soon followed by some notable reductions in mass-market mortgage rate products would be a big boost to home-mover sentiment and affordability.”
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.”
Kevin Shaw, National Sales Managing Director, LRG:
No one will be surprised that the Bank of England has chosen to hold interest rates. With the Budget less than three weeks away, perhaps the Bank sees the need for some stability. And it would have been a brave move to change course in such a situation.
There’s been so much speculation around the 26 November Budget that it’s taken on the status of a political event as well as a fiscal one. The last time we saw something of similar magnitude was the general election of July 2024. Back then the Bank also opted for caution despite the data signalling the need for a base rate reduction. It’s clearly sticking to the same approach.
The Bank’s reasoning is sound. Inflation has remained stubbornly at 3.8% for two consecutive months – not something to panic about, but not yet at the target level at which to relax either. With so much depending on what the Chancellor unveils later this month, holding steady is the least disruptive choice.
For the property market, today’s decision means continued stability for buyers and sellers.
Perhaps on 18 December, when the Monetary Policy Committee next meets, with political uncertainty out of the way and inflation data moving in the right direction, we may see a reduction …well timed for Christmas.
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.”
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.”
Sarah Thompson, Group Financial Services Director, Mortgage Scout:
“By holding the base rate at 4%, the Bank of England has maintained the gradual path we anticipated in 2024 – a steady return to normal conditions rather than rapid change. Our forecast at the end of 2024 predicted up to three reductions this year, taking the base rate from 5.25% to around 4% by year-end, and that’s now been achieved. Falling swap rates have already allowed lenders to reduce pricing, with leading two-year fixed deals now starting from around 3.64%. Many lenders are also becoming more agile, adjusting criteria and increasing income multiples to help borrowers access the market more easily.
“With the Autumn Budget likely to focus on tightening the public finances rather than supporting the housing market, borrowers are better off taking advantage of the progress we’ve already seen. Speaking to a broker now and locking in a good rate could make a real difference before the next round of economic changes.”
Islay Robinson, CEO of Enness Global:
“The Bank of England’s decision to hold rates keeps the economy in a holding pattern at a time when renewed momentum is sorely needed. Inflation has now stabilised, yet the cost of capital remains a headwind for businesses and investors alike.
A modest rate cut would have been a welcome catalyst for growth, improving investment appetite and boosting economic confidence.
The longer the Bank of England delays, the longer the recovery is likely to be and, with the case for stimulus growing stronger by the day, the markets will now be looking to the next decision for a clear signal of intent.”
Guy Gittins, CEO of Foxtons:
“The nation’s homebuyers will not be surprised to see the base rate held today, however, the wider market picture remains encouraging.
The housing market has demonstrated remarkable resilience throughout 2025, with consistent year-on-year growth supported by stable demand and improving lending conditions.
With the end of the year fast approaching, we expect this steady performance to continue as motivated buyers and sellers push to complete before the festive period, despite the uncertainty of the upcoming budget.”
Richard Merrett, Managing Director of Alexander Hall:
“While the Bank of England’s decision to hold the base rate may feel cautious, the underlying mortgage market remains highly competitive, with lenders already adjusting products and criteria to support borrowers.
The recent expansion of the Mortgage Guarantee Scheme, together with broader lending improvements, has already begun to enhance affordability and confidence, particularly among first-time buyers and movers navigating the current environment.
Even without a rate cut today, we expect lenders to maintain this positive momentum, keeping the market well-supported as we move towards 2026.”
Jonathan Samuels, CEO of Octane Capital:
“The Bank of England’s decision to hold rates may prove a missed opportunity to provide the wider economy with some much-needed stimulus and, with inflation now holding firm for three consecutive months, the case for a modest reduction is becoming increasingly difficult to ignore.
A further cut would not only have helped ease the cost of living burden but could also have encouraged investment and job creation at a time when business confidence remains fragile.
For the property sector, a sustained period of stability is always welcome, but additional support through lower borrowing costs would undoubtedly accelerate market activity and drive growth.”
Thomas Cantor, Co-Head of Short-Term Finance at West One Loans:
“The decision to hold rates, despite inflation tracking at 3.8% and rising uncertainty in the labour market, underlines the cautious approach the Bank of England is now adopting.
Although many expected a cut, the decision to pause indicates that the MPC is paying close attention to divided internal views and the political and fiscal backdrop ahead of the Autumn Budget. From a specialist lending perspective, it means finance costs remain elevated and confidence may stay subdued until clearer signals emerge on the next move.”
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