{"id":6106776,"date":"2025-11-17T15:47:04","date_gmt":"2025-11-17T14:47:04","guid":{"rendered":"https:\/\/www.buyassociationgroup.com\/en-gb\/?p=6106776"},"modified":"2025-11-17T15:57:39","modified_gmt":"2025-11-17T14:57:39","slug":"uk-property-market-base-rate-holds-rates-reduce","status":"publish","type":"post","link":"https:\/\/www.buyassociationgroup.com\/en-gb\/news\/uk-property-market-base-rate-holds-rates-reduce\/","title":{"rendered":"UK property market: Base rate holds, rates reduce"},"content":{"rendered":"

It\u2019s worth the reminder that the Bank of England\u2019s base rate<\/a> doesn\u2019t directly correlate to the fixed rates we see on offer by lenders.<\/h2>\n

They\u2019re more dictated by the SONIA swap rates, and whilst \u2013 yes \u2013 the overall UK economy, global economy and inflation do have an effect on these, it\u2019s not a direct correlation to base rate.<\/p>\n

The latest base rate meeting was held earlier this month which is understandable considering Rachel Reeves delivers her budget on the 26th November<\/a>, however we\u2019ve been seeing some lenders reduce their rates over the past week or two. This mimics what has happened with SONIA swap rates<\/a>, too \u2013 with 5 year swaps sat at 3.528% as of the 12th November 2025, compared to 3.745% a month prior on the 13th October 2025.<\/p>\n

This downward trend is welcomed, and some high-street lending giants led the way with cuts, and then it usually takes a little while for more specialist lenders to follow.<\/p>\n

This ignites activity in the market which I feel is well overdue. We\u2019re seeing consistent levels of landlords purchase property, even with the Renters’ Rights Bill<\/a> dates getting rolled out, but I feel that experienced landlords aren\u2019t going to be too phased by this as they operate at professional, high-standards anyway.<\/p>\n

The rate reductions also create healthy competition in the marketplace, and prompt lenders to review how to make their proposition attractive to gain more clients and lend more. I always welcome it, as if a lender can\u2019t make rate cuts due to how they\u2019re funded, then perhaps they\u2019ll improve their proposition as a whole, so it becomes a win-win<\/strong> ultimately for the client.<\/p>\n

At Fowler Smith Mortgages & Protection, we\u2019ve seen consistent interest<\/strong> in landlords still buying buy to let property, whether they be single lets, HMOs, multi unit blocks, or even commercial units and more niche property types. There\u2019s still interest with developers looking at land acquisition, so the confidence is high.<\/p>\n

I\u2019ve also noticed more emergence of lenders coming to market, too. Lenders that are more tech-focused, or backed by European countries allowing them to offer higher income multiples on residential deals due to longer fixed rates and different methods of stress-testing, along with new buy to let lenders who welcome the more, let\u2019s say \u2018quirky\u2019 property or tenancy types.<\/p>\n

On the whole, it\u2019s a great sign to see lenders showing their appetite to the market and making sure that property purchasing still remains a viable option for many.<\/p>\n","protected":false},"excerpt":{"rendered":"

It\u2019s worth the reminder that the Bank of England\u2019s base rate doesn\u2019t directly correlate to the fixed rates we see on offer by lenders. They\u2019re more dictated by the SONIA swap rates, and whilst \u2013 yes \u2013 the overall UK economy, global economy and inflation do have an effect on these, it\u2019s not a direct… Read more »<\/a><\/p>\n","protected":false},"author":4221,"featured_media":6093227,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[2,179,26,6],"tags":[],"class_list":["post-6106776","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-buy-to-let-landlords","category-expert-advice","category-tax-mortgages-money","category-uk-housing-market"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts\/6106776","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/users\/4221"}],"replies":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/comments?post=6106776"}],"version-history":[{"count":1,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts\/6106776\/revisions"}],"predecessor-version":[{"id":6106777,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/posts\/6106776\/revisions\/6106777"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/media\/6093227"}],"wp:attachment":[{"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/media?parent=6106776"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/categories?post=6106776"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.buyassociationgroup.com\/en-gb\/wp-json\/wp\/v2\/tags?post=6106776"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}