Strategic Stability: Lending Implications of the September Base Rate Hold
The Bank of England’s decision to hold the base rate at 4.00% in September, following August’s 0.25% cut, represents a measured pause. Inflation remains above target, but it is easing, energy prices are rising, and early signs of slack in the labour market are emerging. Against this backdrop, the Budget in November is expected to be the next major catalyst for market movement.
This period provides welcome clarity. Lender sentiment remains constructive, and the absence of immediate change creates the opportunity to revisit client borrowing strategies with confidence.
Lending Environment
Lenders remain active across high-value segments
Private banks continue to offer bespoke, asset-backed, and cross-border facilities
Affordability frameworks are being refined for self-employed, investment-backed, and later-life clients
Implications Across Client Profiles
Refinancing: Clients exposed to SVRs or legacy borrowing still stand to benefit from restructuring
Acquisition Funding: Appetite for high-value transactions is strong, particularly for diversified asset holders
Later-Life Lending: Borrowing remains available into later life, where assets and income support the case
Cross-Border Clients: The high-value market continues to be well served, with lenders prioritising profile and relationship over rigid criteria
Our Message to Your Client: There is an Advantage in Acting Now
This is a stable but temporary window. Currently, no further cuts are expected this year, and the Budget may drive borrowing costs higher through repricing, even if the MPC holds steady in December. By securing terms today, clients gain protection and optionality, with the flexibility to switch to better products if they emerge.
Supporting Your Client Conversations
For wealth managers, accountants, solicitors, and private client advisers, this is an ideal moment to advise clients to revisit existing mortgage arrangements and confirm they are still fit for purpose. Lending appetite remains strong, and the groundwork laid today will shape client outcomes well into 2026.
Please note:This article is intended for informational purposes only and does not constitute financial advice. The information contained herein is based on market conditions and opinions at the time of publication and is subject to change without notice.This article may contain references to or summaries of market research reports or analyses prepared by external providers. Henry Dannell does not endorse or adopt the views expressed in any such third-party reports. We recommend that you review the original research reports before making any decisions based on their content. Please also note: a mortgage is secured against your home or property. Your home or property may be repossessed if you do not keep up repayments on your mortgage or any other debt secured on it.
