The Bank of England has held the base rate at 4.00% in its September announcement, following August’s 0.25% cut. This pause reflects caution in balancing inflation pressures with financial stability.
Though inflation is gradually easing, it remains above the Bank’s May forecast. Energy prices and global trade both continue to complicate the picture. And, while there are early signs of a softening labour market emerging, this is not enough to warrant further cuts.
Henry Dannell anticipates no further reductions to the base rate this year, but our attention turns to the Annual Autumn Budget on November 26th, which could affect borrowing costs.
If your fixed-rate deal is due to end within the next six months, now is the right time to review your options. Pricing remains competitive, and acting early allows you to secure terms in stable conditions, insulating you from any repricing after the Budget.
For first-time buyers, the key is not to wait. With a potential change in the cost of borrowing, now is the time to secure a new rate. Lenders remain competitive, and securing terms early ensures you benefit from current market stability. Acting ahead of the Budget helps safeguard affordability and gives you greater certainty in your purchase plans.
With no further cuts expected in 2025, this pause offers a valuable window to act before conditions shift. Locking in now protects against possible increases in borrowing costs following the Budget.
Securing a mortgage today does not mean committing to today’s rate. At Henry Dannell, we monitor products daily and update offers if better terms appear before completion. This ensures you can act confidently now, without losing future opportunities.
While the headline base rate underpins your personal monthly affordability, your mortgage experience is ultimately shaped by lender policy, product design, and how your financial profile is presented. That is where expert advice proves critical.
At Henry Dannell, we work closely with homeowners and first-time buyers navigating nuanced financial circumstances, from self-employment and variable income to gifted deposits and professional career paths. Instead, we curate a tailored mortgage narrative that aligns with your objectives and anticipates lender concerns before they arise.
This is not a return to the era of ultra-low rates; however, it is important to note that the times of 1% mortgage rates were not a normal rate environment, and the one we are in now is considerably more stable. For many borrowers, the landscape is improving incrementally.
Whether you are nearing the end of a fixed rate, considering your first purchase, or exploring ways to restructure existing debt, now may be the right time to initiate a review.
If you would like to explore your options in light of the recent base rate change, our advisers would be pleased to provide a tailored assessment of your position, helping you move forward with clarity and confidence.