As widely expected, the Bank of England has held the base rate at 4.00% for September. This decision reflects a cautious but deliberate pause, following August’s 0.25% cut. Inflation remains above the Bank’s May forecast, driven by energy costs and supply-side pressures. While the labour market is also softening, these factors did not justify further easing. Why? Well, the impending Annual Autumn Budget, due to take place on November 26th, is becoming the critical point of focus, with markets preparing for its impact on borrowing costs and wider financial sentiment. It is anticipated that, at least until this event, the base rate will remain at 4.00%.
Even without a direct change from the MPC, as leaks for budget changes come through, lenders may react and, as a result, the cost of borrowing could increase.
The most recent announcement presents a timely opportunity for borrowers to secure terms ahead of uncertain conditions.
By holding the rate steady, the Bank is signalling three things:
This creates a window of stability that should be viewed as an opportunity to act strategically.
For homeowners nearing the end of fixed-rate terms within the next six months, today’s environment is competitive, with the ability to lock in a rate now and continue to review until the current rate comes to an end. This is why, with the impending budget, locking in an option now is key. First-time buyers benefit from stability in affordability assessments and a willingness among lenders to be more flexible in income assessment.
With no further cuts expected this year, now may present a final opportunity to secure favourable terms before the Budget potentially pushes borrowing costs higher, even without a change in the base rate itself. Acting now provides protection and flexibility.
High-net-worth clients, portfolio landlords, later-life borrowers, and international buyers are all seeing constructive conditions. Holistic underwriting, portfolio-based lending, and tailored affordability remain available with the right support.
Today’s stability provides the right moment to plan. Securing terms now ensures stronger positioning should borrowing costs rise after the Budget.
Securing a mortgage today does not mean being tied to today’s rate. Products can be switched before completion if better terms become available, ensuring clients act from strength rather than haste.
For wealth managers, accountants, solicitors, and advisers, this is a valuable time to revisit client borrowing. The absence of immediate change creates space for meaningful conversations around refinancing, acquisitions, and liquidity planning. Lending appetite remains strong, and the decisions made now will influence outcomes well into 2026.
This stability is a window of opportunity for clients and introducers alikerth clients alike, it is a timely moment to review how debt is structured and whether current terms reflect future goals.
Whether you’re refinancing, buying, or advising a client with complex borrowing needs, the current market offers opportunity, but also nuance. A strategic review can uncover advantages that are not always visible through a conventional lens.
If you’d like to explore how the recent base rate cut may affect your plans, or your clients’, our team would be pleased to assist with clarity, discretion, and specialist insight.