Bank of England hold Base Rate at 4.25%

The Bank of England announced on Thursday 19th June, that it will hold the Base Rate at 4.25%.

The Bank’s focus is to strike the right balance between keeping inflation close to its target of 2%, and keeping the wider economy healthy.

Matt Smith, Mortgage Expert at Rightmove says "Despite the global uncertainty and turbulent events that we’ve had so far this year, the mortgage market has remained fairly stable. We’re broadly where the markets expected us to be at the start of the year in terms of inflation and rate cuts.

“Lenders have a bit of room to reduce rates further even with a hold in the Bank Rate today so home-movers can still be hopeful of some small mortgage rate cuts over the next couple of weeks. Average rates have been pretty flat in recent weeks, but we have seen increasing signs of competition amongst lenders as they have reduced their stress-testing criteria and with new mortgage products coming back to market, lenders are looking at ways to support more people get the home that they want.”

Could the Base Rate be reduced?

The current view is that we can expect to see one more Base Rate cut later this year, but this forecast could change due to ongoing global uncertainty, and any shifts in how the market expects things to pan out.

While we have seen the start of a downward curve so far this year, it is highly unlikely that Base Rates will drop back to the historic lows we saw back in 2021.

Are you thinking of waiting a little longer to see if they drop further? Torc24, our recommended mortgage advisor has said:

"We always advise our customers that we can lock in the best rate now, giving you peace of mind when you reserve your property. Think of this as a worst case scenario. Around a month prior to completion, we will re-assess the mortgage products available on the market and get you a better rate if possible ahead of completion."

When is the next Base Rate review?

The Base Rate is reviewed every 6 weeks by the Bank of England, deciding whether or not interest rates should increase, decrease or remain the same.

The next announcement will be on 7th August 2025.

For more information on the Base Rate cut in June 2025 and what this could mean for you, read this article from Rightmove.