Bank of England cuts Base Rate to 3.75% — What does it mean for you?

In a widely anticipated move, the Bank of England has cut its base interest rate to 3.75% today (down from 4%) marking the latest adjustment in response to falling inflation and weaker economic growth. This is the lowest level in nearly three years and reflects ongoing efforts by policymakers to support the UK economy.

So what does this mean for homeowners and buyers?

• Mortgage costs - For those with a mortgage that tracks the Bank of England’s rate, this cut means you’ll see a decrease in your monthly repayments.

• New mortgage deals may become more competitive in the coming weeks as lenders respond to the rate cut by offering more attractive options.

• Savers may see lower returns, as savings rates often fall when the base rate is reduced.

For anyone thinking about buying, moving, or reviewing their mortgage, this shift could be an encouraging sign, and with expectations of further rate adjustments in 2026, it’s worth keeping an eye on how the market responds.