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What's happening to the base rate?
Bank of England holds the rate at 4% in September – should you wait to remortgage?
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The Bank of England has decided to maintain the base rate at 4%.
Its nine-member Monetary Policy Committee (MPC) voted by a majority of 7-2 to keep the rate at its current level. Two members voted to reduce the rate by 0.25 percentage points.
Read on to find out what the decision means for you - whether you're buying a home, are due to remortgage or are trying to get the best return on your savings.
Why has the Bank of England held the base rate?
In its latest report, the MPC cited inflation for its more cautious approach.
Inflation was 3.8% in August, and is expected to rise to 4% in September, which would make it double the Bank's 2% target.
The committee concluded that 'a gradual and careful approach to the further withdrawal of monetary policy restraint remained appropriate'.
- Find out more: best mortgage rates and deals 2025.
What this means for homeowners
Despite last month's 0.25 percentage point base rate cut, rates have not fallen significantly on mortgages, Moneyfacts data shows.
Between the start of August and the start of September, the average two-year fixed-rate mortgage fell from 5.01% to 4.96%, and the average five-year fixed-rate deal fell edged down 5.01% to 5.00%.
Around 900,000 fixed-rate mortgage deals are due to expire in the second half of 2025, according to figures from UK Finance.
So for homeowners looking to remortgage soon, today's decision will be unwelcome news, as mortgage rates are unlikely to shift dramatically.
If you're currently on a standard variable-rate mortgage, your rate won't change. Tracker mortgages, which are linked to the base rate, will also remain steady.
Our table shows the current top rates for remortgaging across a range of LTV bands.
- Find out more: how the base rate works
| Two-year fixed-rate | 60% | Halifax | 70% | 3.74% | £1999 | 7.49% |
| Two-year fixed-rate | 60% fee free | RECOMMENDED PROVIDER First Direct | 75% | 4.09% | £0 | 6.49% |
| Two-year fixed-rate | 75% | Halifax | 70% | 3.94% | £1999 | 7.49% |
| Two-year fixed-rate | 75% fee free | Yorkshire Building Society | 68% | 4.23% | £0 | 5.99% |
| Two-year fixed-rate | 85% | Clydesdale Bank | 71% | 4.89% | £999 | 6.99% |
| Two-year fixed-rate | 85% fee free | Clydesdale Bank | 71% | 4.94% | £0 | 6.99% |
| Two-year fixed-rate | 90% | Leeds Building Society | 72% | 4.49% | £999 | 6.99% |
Table notes: Data from Moneyfacts, correct as of 18 September 2025. Customer scores are based on a survey of 3,556 members of the public in August-September 2024 and combine overall satisfaction with likelihood to recommend the provider. The average customer score is 70%. To become a Which? Recommended Provider a lender must get a top customer score, consistently offer competitive deals and be fully covered by the Financial Conduct Authority banking standards regime. 'Revert rate' is the standard variable rate (SVR), which is the mortgage rate you'd be transferred onto when your deal ended if it remained unchanged between now and then.
What this means for homebuyers
First-time buyers and home-movers hoping the base rate would be cut to help mortgage rates fall will also be disappointed.
The table shows the current top rates for home-movers and first-time buyers.
| Two-year fixed-rate | 60% | Yorkshire Building Society | 68% | 3.87% | £995 | 5.99% |
| Two-year fixed-rate | 60% fee free | RECOMMENDED PROVIDER First Direct | 75% | 4.05% | £0 | 6.49% |
| Two-year fixed-rate | 75% | Yorkshire Building Society | 68% | 3.94% | £995 | 5.99% |
| Two-year fixed-rate | 75% fee free | Barclays | 68% | 4.16% | £0 | 5.99% |
| Two-year fixed-rate | 85% | Clydesdale Bank | 71% | 4.09% | £1499 | 6.99% |
| Two-year fixed-rate | 85% fee free | RECOMMENDED PROVIDER First Direct | 75% | 4.29% | £0 | 6.49% |
| Two-year fixed-rate | 90% | West Brom Building Society | N/A | 4.29% | £999 | 6.39% |
Table notes: Data from Moneyfacts, correct as of 18 September 2025. Customer scores are based on a survey of 3,556 members of the public in August-September 2024 and combine overall satisfaction with likelihood to recommend the provider. The average customer score is 70%. To become a Which? Recommended Provider a lender must get a top customer score, consistently offer competitive deals and be fully covered by the Financial Conduct Authority banking standards regime. 'Revert rate' is the standard variable rate (SVR), which is the mortgage rate you'd be transferred onto when your deal ended if it remained unchanged between now and then.
What does this mean for savings?
For savers, the news is more mixed.
While average easy-access rates have fallen since August's base rate cut, fixed-rate accounts have held up and even risen slightly.
Since the start of August 2025, the average easy-access savings rate has fallen by 0.08 percentage points, from 2.68% to 2.60%, Moneyfacts data shows.
However, one-year deals only fell from 3.99% in August to 3.96% in September, and two-year deals crept up from 3.88% to 3.89% on average.
Here are the top accounts available right now.
- Find out more: best savings rates 2025.
| Instant access | cahoot | 5%(a) | 61% | £1 | Internet | Monthly, yearly |
| One-year fixed rate | OakNorth Bank | 4.45% | n/a | £1 | Internet, mobile app | On maturity |
| One-year fixed rate | Tandem Bank | 4.45% | n/a | £1 | Internet, mobile app | Yearly |
| Two-year fixed rate | Birmingham Bank | 4.44% | n/a | £5,000 | Internet | Yearly |
| Three-year fixed rate | Birmingham Bank | 4.46% | n/a | £5,000 | Internet | Yearly |
| Four-year fixed rate | JN Bank | 4.45% | n/a | £100 | Internet | Yearly |
| Five-year fixed rate | Birmingham Bank | 4.53% | n/a | £5,000 | Internet | Yearly |
Table notes: rates sourced from Moneyfacts on 18 September 2025. Provider customer score is based on savers' overall satisfaction with the brand and how likely they are to recommend it to others. n/a means sample size was too small for us to generate a provider score. (a) Rate drops to 3% after three months
When is the next base rate decision?
The MPC has a further two meetings scheduled in 2025, with the next base rate announcement due on Thursday 6 November.
Experts predict there will be one further base rate cut this year - most likely in December.
However, the timing of any cuts will depend on the developments of key economic indicators, such as inflation levels and economic growth, over the coming months.
This story is regularly updated after the latest base rate decision, with rate analysis and expert views. The last update was on 18 September 2025.
