Bank Of England Base Rate Remains at 4.75%

The Bank of England held base rates at 4.75%* following the latest and final meeting of its Monetary Policy Committee (MPC) in 2024. 

The decision to leave the base rate unchanged was widely anticipated by most market analysts and came just two days after the latest inflation figures, which indicated that there’s still work to do to keep price rises at or below the government’s target of 2%.  

At its last committee meeting on November 7th, the Bank of England reduced its base rate by 0.25% from 5%* to 4.75%* for just the second time this year. The Bank’s governor, Andrew Bailey, has consistently said that future rate cuts will be much more gradual than in the past. Following the latest decision to keep the base rate on hold, he reiterated this approach and urged caution as to when further rate cuts will be possible over the next twelve months.

Uncertainty over how quickly the economy will grow in 2025—the Bank has just revised its forecast for growth during the last three months of 2024 down from 0.3%* to 0%*—coupled with the possibility of impending global trade wars once the Trump administration takes the reins in the U.S., meant a second consecutive base rate cut was always highly unlikely. 

By the time the MPC meets again on February 5, 2025, the central bank will have more data available on how the economy has performed since the Labour government’s first Budget measures were announced and whether inflation has been contained before deciding on further base rate cuts. 

Source: Bank of England

What does this mean for mortgages? 

If you currently have a variable-rate mortgage, such as a tracker mortgage, no change in the base rate means no change to your mortgage rate. However, if the central bank’s predictions come to fruition, 2025 should see a cycle of rate cuts, which will be passed on through a reduction in your mortgage repayments. 

If you have a fixed-rate mortgage, your repayments will remain the same throughout the term of your deal, regardless of what happens to the base rate. 

For anyone who’s a first-time buyer, looking to remortgage, or moving house in early 2025, there are still many competitive deals and special schemes available. The best way to find them is by using the services of an experienced mortgage broker—like us! 

Our mortgage team has access to over 100 lenders and can search the mortgage market on your behalf to find the right deal that suits your exact requirements. This will save you time and, potentially, some money. 

Just make an enquiry, and one of our Mortgage Experts will be in touch to help you get started.