Bank of England Holds Interest Rates at 4% – What It Means for You

The Bank of England has voted to keep interest rates on hold at 4%, with five members voting to hold and four in favour of a cut. Inflation now sits at 3.8%, which is well below the highs we saw last year and heading in the right direction.

This decision means stability for now, which is no bad thing. With the Autumn Budget just around the corner, the Bank has chosen to play it safe until it knows more about what the Chancellor plans to do on tax and spending. Many experts still believe we could see a cut before the end of the year, which would be a real boost for homeowners and buyers alike.

The good news is that lenders are already responding positively. Mortgage rates have been quietly improving over the past few weeks, with some banks launching more competitive fixed-rate deals to attract borrowers before year end. The average two-year fixed rate is now around 4.4%, down from nearly 5% this time last year.

For homeowners, this means a bit of breathing space. Those on fixed rates won’t see any change, while those coming to remortgage soon might find better options than they did even a few months ago. For buyers, it means affordability is slowly improving, and with competition between lenders heating up, now could be a smart time to make your move before rates drop further and demand rises again.

For landlords, keeping the rate steady means no surprise increases in borrowing costs and a little more certainty to plan ahead. For tenants, it offers stability too, helping to keep rental markets steady while everyone waits to see what the Budget brings.

In short, while this might look like a “no change” decision, it’s actually a positive one. The market is calming, inflation is easing, and we’re edging closer to a rate cut. It all points to a stronger, more confident property market as we head into 2026.

If you’re thinking of buying, selling, or investing, now is the time to talk to our team. We can help you take advantage of these improving conditions and position yourself ahead of the curve before the market starts to move again.