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BoE Cuts Base Rate to 3.75%: What It Means for Your Mortgage

Mortgage News

BoE Cuts Base Rate to 3.75%: What It Means for Your Mortgage

The Bank of England has reduced Bank Rate from 4.00% to 3.75%. Here’s what that could mean for mortgage rates, monthly payments, and the choices available if you’re coming to the end of a fixed deal.

This article is for general information only and does not constitute financial advice. Information is correct at the time of writing and may change as market conditions and lender policies evolve. A mortgage is a loan secured against your home. Your home may be repossessed if you do not keep up repayments on your mortgage.

What happened today?

The Bank of England has cut the UK Bank Rate by 0.25%, taking it from 4.00% to 3.75%.

Base rate changes can influence mortgage pricing across the market, but the impact depends on the type of mortgage you have and whether you’re looking for a new deal.

Below we break down what could happen next — and what to consider if you’re on a variable rate or approaching the end of your fixed rate.

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Who feels the impact first?

Base rate changes tend to affect some borrowers faster than others.

  • Tracker mortgages usually move in line with the base rate (often base rate plus a set margin), so monthly payments may reduce quickly after a cut.
  • Standard Variable Rate (SVR) mortgages can change at the lender’s discretion. Some lenders may pass on cuts quickly, others may reduce rates more slowly or by a smaller amount.
  • Fixed rate mortgages typically won’t change until your fixed period ends, because the rate is locked in for the agreed term.

If you’re on a tracker or SVR, it’s worth checking your lender’s communications over the next few days to see whether your rate (and payment) is changing.

What does this mean if you’re remortgaging soon?

If you’re coming to the end of a fixed rate, a base rate cut can be a positive signal — but it doesn’t automatically mean fixed rates will drop overnight.

Mortgage pricing is influenced by several factors, including market expectations about future rates, lender funding costs, and competition between providers.

  • If your deal ends soon, you may be able to secure a new rate in advance and still switch later if something better appears.
  • If you’re on SVR after your fix ends, you could be paying more than necessary — even after a base rate cut — so it’s worth reviewing options early.
  • If affordability is tight, it can help to explore a range of products (including different fixed terms) and consider total costs, not just the headline rate.

If you’d like, we can help you compare suitable deals and sense-check your options before you commit — especially if your renewal date is within the next few months.