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Since the Bank of England held interest rates at 4.25% last week, more households and mortgage holders have started rethinking their next financial plans. Inflation is still above target, but it鈥檚 no longer moving in the unpredictable ways seen in previous years. At 3.4%, it’s steady, but still high enough to delay any strong action from the Monetary Policy Committee.

And as much as the vote to hold was expected, the split (with 3 members voting for a cut) showed that views inside the committee are starting to diverge. That has drawn attention from markets and economists, who are now watching more closely for signs of a shift at the Bank鈥檚 next meeting in August.

How Are Banks And Borrowers Reacting?

Since the decision, some lenders have already started adjusting their mortgage rates. Many fixed-rate deals have become slightly cheaper, as banks factor in the possibility of cuts later this year.

Victor Trokoudes, founder of Plum, says it鈥檚 not a bad time to lock in a deal if the numbers work. Fixed-rate products offer stability, and some of the rates now available could become less common if inflation proves harder to control.

Meanwhile, tracker mortgages have gained more attention. People who can afford some flexibility are weighing whether it鈥檚 worth staying on a variable product to benefit later, though that choice comes with risk.

What Are Industry Leaders Saying About It?

Experts have shared their comments reacting to the news… Here’s what they have to say:

Stephanie Daley, Director of Partnerships at Alexander Hall, commented:

鈥淎lthough a cut may have been the preferable decision, today鈥檚 choice to hold the base rate once again will still be welcomed by homebuyers and remortgagers alike, as it reinforces the growing sense of consistency and strength in the mortgage market.

We鈥檝e continued to see growing borrower engagement in recent months, driven by greater pricing stability and increased lender confidence. Even without a rate cut we have seen product choice across all segments of the market remain healthy and the number of products available for low-deposit mortgages has improved substantially since the start of the year.

With this stable rate environment and improving affordability, we expect momentum to build further as we move into the second half of the year.鈥�

Co-Head of Short-Term Finance at West One Loans, Guy Murray, commented:

“It鈥檚 disappointing not to see a base rate cut at this stage, particularly as the Bank of England now takes a break until September. The market needs stimulation 鈥� whether through monetary policy or direct government intervention 鈥� and continuing to delay that support risks stalling the progress we鈥檝e seen in recent months.

鈥淔or borrowers in the specialist finance space 鈥� especially developers and housebuilders managing larger, more complex funding needs 鈥� the lack of movement in rates keeps borrowing costs higher than they need to be at this point in the cycle. The market doesn’t just need stability, it needs momentum, and rate cuts are essential for driving that.

鈥淭here鈥檚 now growing concern that we may only see one cut in 2025, which simply won鈥檛 go far enough to unlock the full potential of development activity. Developers are eager to get projects moving, but they need the right financial conditions to do so 鈥� and that means action, not caution.”

Jonathan Samuels, CEO of Octane Capital, commented:

“The Bank of England鈥檚 decision to hold interest rates today is a measured and expected response to the current economic climate and we鈥檝e seen this tentative approach adopted many times before. While inflation has eased, it remains above target, and the Bank is clearly choosing to balance caution with progress.

鈥淥f course, this continued pause will still provide some much-needed reassurance for borrowers and lenders alike, maintaining the stability we鈥檝e seen return to the mortgage sector in recent months.

鈥淭ransaction levels are picking up, mortgage approvals are on the rise, and sentiment among both buyers and investors is improving.

鈥淲e expect this momentum to build further through the second half of the year, laying the foundations for a more confident and active property market in 2025.”

Bradley Post, MD at RIFT, commented:

鈥淭he Bank of England鈥檚 decision to hold interest rates will come as a mixed bag for UK households. On the one hand, no news is good news and it鈥檚 certainly better than an increase. But for many families still grappling with elevated living costs, it doesn鈥檛 bring immediate relief.

鈥淭hose with variable-rate mortgages or other forms of borrowing won鈥檛 see their monthly repayments increase, which is positive news. However, the cost of credit remains significantly higher than it was just a couple of years ago, and that continues to put pressure on household budgets. At the same time, savers are seeing better returns than in the past decade, but with inflation still eating into real-term gains, it鈥檚 a case of treading water rather than making meaningful progress.

“Ultimately, a rate hold maintains stability 鈥� but for households across the UK, the day-to-day financial squeeze is far from over. More targeted support and sustained economic growth will be key to improving financial resilience in the months ahead.”

Jean Jameson, Chief Sales Office at Foxtons, commented:

鈥淕iven the fact that inflation remains stubbornly higher than the Bank of England鈥檚 two percent target, a hold on the base rate was widely expected today and is unlikely to deter the nation鈥檚 homebuyers who have been entering the market in force since the start of the year.

鈥淪tability is key when it comes to market confidence and since interest rates have started trending downwards we鈥檝e seen robust mortgage approval numbers. These are now converting to more offers made, more sales agreed and even greater positivity with respect to the upward rate of house price growth.

鈥淲e鈥檝e already seen many lenders re-introduce sub four percent product offerings as a result of increased competition and, with this level of market activity only expected to strengthen over the coming months, the nation鈥檚 buyers and remortgagers should continue to benefit from improved levels of affordability.鈥�

Marc von Grundherr, Director at Benham and Reeves, commented:

“Today鈥檚 decision to hold the base rate is a pragmatic one, and while it may not move the dial dramatically, it reinforces the growing sense of stability returning to the property market. In London, where the cost of homeownership is considerably higher, even small fluctuations in borrowing costs can have a significant impact on buyer sentiment and affordability.

鈥淎 hold on rates provides much-needed breathing room for those navigating the capital鈥檚 challenging market, particularly first-time buyers and upsizers who are already stretching their finances. We鈥檝e seen renewed confidence over recent months, with buyers beginning to return and sellers adjusting expectations 鈥� today鈥檚 decision will help to maintain that momentum.

鈥淲hile we鈥檙e not expecting a surge overnight, the foundations are being laid for a more active and balanced London market as we move through the remainder of the year. Stability breeds confidence, and that鈥檚 exactly what the market needs right now.”