Bank of England holds interest rates at 4%: What it means for buy-to-let pricing

As the Bank of England holds interest rates at 4%, Steve Cox, our Chief Commercial Officer, shares his views on what this means for mortgage rates for the remainder of 2025.

“The Bank of England’s decision to hold Bank Base Rate at 4% today comes as little surprise, but it should probably mark a shift in expectations for what might happen in the months ahead. With inflation projected to edge up in the short term and economic growth continuing to be conspicuous by its absence, it’s understandable why the MPC is taking a cautious stance now and is likely to do so for a number of months to come. While markets had previously priced in multiple rate cuts this year and next, that outlook has definitely softened. Economic headwinds – both domestic and global – mean the path to lower rates is likely to be slower and more uncertain than previously hoped.

“That said, it’s important to stress that in the buy-to-let market, we don’t need a base rate cut to deliver more competitive pricing. At Fleet, we’ve already reduced rates across our product range in recent weeks and will continue to review opportunities to do so. Lenders who are less reliant on the money markets for funding have more flexibility to respond quickly and that’s exactly what we’re doing. It means advisers can still offer strong value to landlord clients, especially those remortgaging or seeking to expand portfolios, even in a static Bank Base Rate environment. Plus, the closer we get to the end of the year, the greater likelihood that lenders will be pricing in order to fill up early 2026 pipelines, which of course can present a number of opportunities to advisers with all types of borrower clients.”