The Bank of England has held its base rate (the rate it charges banks, which flows through to your mortgage) at 3.75%, with the MPC (Monetary Policy Committee) keeping its powder dry as inflation risks complicate the path to further cuts. For mortgage holders, the monthly cost stays unchanged - for now.

What the Hold Means for Your Monthly Payments

Run the numbers on a typical scenario: a £200,000 BTL interest-only mortgage at 3.75% costs £625 per month, based on standard interest calculations. That figure has not moved today. But markets are pricing in two to three rate cuts across 2026, per current market pricing, which means relief could still be on the way.

If the MPC cuts by 0.25% at a future meeting - bringing the base rate to 3.5% - your monthly payment on that same £200k mortgage drops to £583. That is a £42-per-month saving, or £504 over a full year. Not life-changing, but real money across a portfolio.

Why the MPC Is Holding Back

Services inflation (price rises in sectors like hospitality and professional services, which tend to be stickier than goods prices) remains above the Bank of England's 2% target. Global tariff pressures are adding to the uncertainty. The MPC does not want to cut and then be forced to reverse - a move that would damage its credibility and unsettle lenders.

That caution is frustrating for landlords waiting on lower rates, but it reflects the data available to the committee. Lender criteria (the affordability rules banks use to approve mortgages) are still built around stress-test rates, so a single hold does not move the dial on what you can borrow. You may wish to review your current deal and consider whether a short-term fix or tracker keeps you positioned for the cuts that market pricing still expects later this year.