The Bank of England (BoE) has decided to keep the base interest rate at 4.50%, maintaining the level set in recent months. But what does this decision mean for homeowners and those looking to remortgage?

Here’s what you need to know...

Why Did the Bank of England Hold Interest Rates?

The BoE’s decision to hold rates is primarily driven by several key economic factors:

Inflationary Pressures Are Easing (But Still Present)
While inflation has started to decline from its previous highs, it remains above the BoE’s 2% target. By keeping rates steady, the Bank aims to strike a balance—curbing inflation without putting excessive strain on borrowers.

Economic Growth Remains Fragile
The UK economy has shown signs of slow growth, and a rate hike could stifle consumer spending and business investment. Holding rates provides some stability to encourage economic momentum.

Mortgage Market Stability
Mortgage rates have been highly volatile over the past 18 months, and by holding the base rate, the BoE seeks to provide some consistency for lenders and borrowers alike.

Global Economic Uncertainty
Ongoing geopolitical tensions and economic concerns in major markets like the US and the EU have also played a role in the Bank’s decision to maintain its current stance.

1.8 Million Fixed-Rate Mortgages Ending – Are You Affected?

One of the biggest concerns for homeowners is the expiration of low fixed-rate mortgage deals. The UK is set to see 1.8 million mortgages come to the end of their fixed terms in 2025.

Notably, nearly 750,000 homeowners who took advantage of low mortgage rates during the Covid pandemic will face higher repayment costs as their five-year fixed-rate deals from 2020 come to an end.

This group is particularly vulnerable to rate increases, given the historically low rates available during that period.

If you’re one of these homeowners, now is the time to review your options.

Jumping to another lender – With mortgage rates fluctuating, switching lenders could save you thousands over the term of your mortgage.

Sticking with your current lender – Your lender may offer you a product transfer, but is it the best deal available?

Why You Should Act Now

Mortgage rates remain unpredictable. While the BoE has held the base rate for now, lenders are adjusting their own rates based on various factors, including market demand and long-term forecasts. Waiting too long could mean locking into a higher rate than necessary.

A mortgage broker can:

✔️ Assess your options across the entire market – not just what your bank offers
✔️ Secure a deal now and keep checking for better rates before your new mortgage starts
✔️ Help you navigate complex lending criteria and find the best solution for your situation

Frequently Asked Questions (FAQs)

 1. Why did the Bank of England hold rates instead of cutting them?

While inflation is cooling, it remains above the BoE’s 2% target. Holding rates helps keep inflation in check without risking a significant economic slowdown.

2. How do I know if I should remortgage now?

If your fixed-rate deal is ending within the next 6 months, it’s worth exploring your options now. A broker can help you secure a new rate and monitor the market for better deals.

3. What happens if I do nothing when my fixed-rate deal ends?

If you don’t arrange a new mortgage, you’ll likely move onto your lender’s Standard Variable Rate (SVR), which is usually much higher than fixed-rate deals and could increase your monthly repayments significantly.

4. How can a mortgage broker help me?

A good broker searches over 70 lenders, not just your current lender’s offerings. They can help you secure a competitive deal and continue to monitor rates for potential improvements before your new deal starts.

5. Are rates expected to go up or down in 2025?

Forecasting interest rates is difficult, but many experts predict that the BoE may consider cuts later in 2025 if inflation stabilises. However, market conditions and global events can impact this outlook.

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Get in Touch

If you’re in Cobham, Meopham, Gravesend, Rochester, or surrounding areas, now is the perfect time to review your mortgage.

At Thameside Mortgages, we specialise in helping homeowners like you secure the right mortgage deal. Whether you’re remortgaging, buying, or just exploring your options, our team is here to guide you every step of the way.

📞 Get in touch today for a free mortgage review – because securing the right deal now could save you thousands in the long run.

👉 Call us or book an appointment online now!

You can call us on 03455 120 125, or complete the form below.

A mortgage is a loan 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 loan secured on it. The Financial Conduct Authority does not regulate most forms of buy to let mortgage.