Bank of England mortgages

Base rate held – what does that mean for mortgage borrowers?

Last week, the Bank of England announced that the base rate would hold after the Monetary Policy Committee voted to maintain it at 0.75%. So, what does this mean for those already with and those who want to secure a new mortgage?

Before the announcement, there was much speculation that the base rate would receive another cut after some pessimism surrounding the effects of political upheaval and Brexit uncertainty; but the decision to hold the base rate indicates that there is confidence in the UK’s economy.

Paresh Raja, CEO at Market Financial Solutions, said: “The Bank of England treads carefully when deciding on the interest rate, so the fact they’ve decided to leave it at 0.75 percent is an important decision.

Investor confidence is returning, and we are likely to see the markets post a modest performance in the aftermath of this announcement.”

Mortgage rates remain competitive

Had the base rate been reduced, it may have intensified competition between mortgage lenders even further. However, the low-interest climate means the great deals available to borrowers are unlikely to disappear anytime soon.

There is a possibility that the Bank of England could consider increasing the base rate over the coming months, depending on how Brexit plays out. Therefore, borrowers looking to purchase or remortgage might consider securing a low deal sooner rather than later.

However, they are advised not to panic about a sharp increase in rates anytime soon, with the economic growth forecast for the first quarter of 2020 at a modest 0.2% and the entire year projected at just 0.75%.

Daniel Hegarty, CEO of Habito, said: “We hope today’s ‘keep calm and carry on’ approach to hold interest rates will complement the bounce seen in consumer confidence following the election, and get the UK moving in 2020.”

Mortgage approvals show confident market

Over the past few months, competition between lenders has seen more products than ever available to both the mainstream residential and buy-to-let mortgage markets. Rates are historically low for many borrowers, who are being urged to take advantage of this wherever possible.

The latest data released for 2019 showed that residential mortgage approvals had seen a significant upturn compared to 2018, with the highest number of mortgages approved in the past four years. The value of the mortgage market has also been on the rise, and the sector is seeing a revival in confidence since the December general election.

Self-certified Sophisticated Investor

Please read

I declare that I am a self-certified sophisticated investor for the purposes of the restriction on promotion of non-mainstream pooled investments. I understand that this means:

I am a self-certified sophisticated investor because at least one of the following applies:

I accept that the investments to which the promotions will relate may expose me to a significant risk of losing all of the money or other property invested. I am aware that it is open to me seek advice from someone who specialises in advising on non-mainstream pooled investments.

High Net Worth Investor

Please read

I make this statement so that I can receive promotional communications which are exempt from the restriction on promotion of non-mainstream pooled investments. The exemption relates to certified high net worth investors and I declare that I qualify as such because at least one of the following applies to me:



Sign-up for first access to new developments and exclusive property investment opportunities.

We send limited and targeted emails on new launches and exclusive deals which best fit your areas. We are trusted by over 30,000 active buyers as their source for new stock.

  • New property developments
  • Professional market reports
  • Property deal alerts
  • Development updates
UK holiday let


Receive trending news straight to your inbox and stay up to date on all of the property market trends and advice.

Established since 2005 we are a leading voice of authority and commentary on the UK property market. Our news is trusted by Apple News & Google News.

  • UK housing market
  • Mortgage & money
  • Buy-to-let landlords
  • Guides & advice

Talk to us

Speak to our UK property experts today:


+44 (0) 333 123 0320

Open from 9am-6pm GMT


+852 6699 9008

Open from 9am-6pm HKT