The Bank of England Cuts Interest Rates to 3.75%

What this could mean for your mortgage – and your next steps.

In a widely anticipated move, the Bank of England today reduced the Base Rate from 4.00% to 3.75%

The decision comes amid weak economic momentum and further signs that inflationary pressures are easing, and follows November’s closely split 5-4 vote to hold rates when four members already favoured a 0.25 percentage-point cut. The Bank reiterated that it stands ready to adjust policy further if conditions require it, with the overall aim of supporting the economy while maintaining price stability.

What This Means for You

If you’re on a fixed-rate mortgage:

There’s no immediate change to your monthly payments. But lower base rates often lead to improved fixed-rate offers. If your current deal is coming to an end, the lower base rate may influence the range of products available on the market.

If you’re on a tracker, variable, or SVR mortgage:

You may see your monthly payments come down soon, depending on your lender and specific product. This could provide welcome breathing space after a period of higher costs.

Let’s Help You Make the Most of It

Making the Most of the Recent Rate Change

The recent rate change creates an opportunity to review your current mortgage position or consider future plans with greater clarity. Whether it involves remortgaging, moving home, or navigating a first-time purchase, it may be helpful to:

• Understand how the latest rate shift influences your existing deal
• Look at the differences between current fixed and tracker products
• Stay informed about how lenders may adjust their offerings

Clear, personalised guidance can support informed decision-making aligned with individual goals.

All the information in this article is correct as of the publish date 18th December 2025. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.

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