BoE Holds Mortgage Base Rate at 3.75% Amid Inflation Concerns

The Bank of England's Monetary Policy Committee has decided to maintain the mortgage base rate at 3.75%. The decision was made after six members voted to keep the rate at its current level, while three committee members advocated for a 0.25% increase.

The BoE warned that rising energy costs due to the war in Iran could lead to a spike in inflation by the end of 2026. This has been welcomed by the mortgage industry, which sees it as a respite from turbulent market conditions.

Ben Thompson from the Mortgage Advice Bureau noted that while the base rate decision is beneficial for borrowers, deposit requirements and criteria still vary greatly among lenders. He advised remortgagors with six months or less left on their current deal to start shopping around due to swap rates influencing mortgage lenders' fixed rates.