Bank of England Holds Base Rate at 4% – Webbers MD Comments on Mortgage Market and Consumer Confidence

Malcolm Prescott, Managing Director of the award-winning Webbers with 13 sales and lettings offices across Devon, Somerset and Cornwall – has responded to the decision by the Bank of England to hold the base rate at 4%.

Malcolm Prescott said: “It comes as no great surprise that the Bank of England has chosen to hold rates at 4% this time around. The reality for the housing market is that mortgage interest rates remain competitive – with five-year fixed products currently available at below 4%. What we now need to see is the continued recovery of positive sentiment. Encouragingly, the retail sector reported a 3.2% increase over July and August, and this kind of consumer confidence is exactly what will underpin the wider market.”

The Bank’s Monetary Policy Committee (MPC) voted by a majority of seven to two to maintain the current rate. While inflation has eased from the highs of recent years, the Consumer Prices Index (CPI) still sits at 3.8% – above the Bank’s 2% target. The MPC has emphasised its determination to keep inflationary pressures under control before considering further cuts.

Industry experts agree that the prospect of another rate reduction in 2025 now appears less certain than previously thought. While some lenders may make minor adjustments to fixed-rate deals, brokers expect mortgage pricing to remain relatively stable in the near term. For homeowners and buyers, this means opportunities remain: competitive long-term fixed rates are available, though borrowers are advised to move quickly if they find a deal that suits their circumstances, as fluctuations in funding costs could trigger small rate increases.

Malcolm  concluded: “We must not underestimate the importance of confidence in the market. Stable mortgage products, positive retail data and careful economic management are all steps in the right direction. If sentiment continues to strengthen, it will provide the foundation for growth across our local housing markets in the South West.”