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

The Bank of England has held interest rates at 4%, providing a sense of stability after a period of sharp increases. At the same time, mortgage rates have fallen to their lowest level since 2022, offering some relief to buyers and homeowners.

Buyers: A Window of Opportunity?

For buyers, slightly cheaper borrowing may improve affordability, though rates remain higher than the historic lows seen in the past decade. This could encourage some who had been waiting on the sidelines to re-enter the market, but affordability pressures are still very real—especially for first-time buyers facing high property prices.

Homeowners: Stability Brings Some Relief

For existing homeowners, stability in interest rates helps to prevent further shocks in mortgage repayments, particularly for those on variable or tracker deals. While the drop in mortgage rates is welcome, many households continue to feel the strain of elevated monthly payments compared to a few years ago.

Sellers: Signs of Cautious Optimism

For sellers, the combination of steadier rates and gradually improving buyer sentiment may support healthier demand. However, the market is still adjusting, and growth is likely to be slower and more cautious than during the boom years of ultra-low interest rates.

Outlook

Overall, while these developments do not remove the challenges in the housing market, they represent steps toward greater balance and predictability—something buyers, sellers, and homeowners alike have been waiting for.

If you want to discuss selling your home or obtaining a mortgage through our partners at the Mortgage Advice Bureau, please contact your local MMP office.