UK Mortgage News: November 2025 Summary

Bank of England Base Rate Held at 4%

• The Bank of England's Monetary Policy Committee (MPC) voted to hold the official Bank Rate at 4% following its November meeting.

• The vote was narrow (5-4), with four members pushing for an immediate cut to 3.75%.2 This close vote signals that further rate reductions are very much on the table, with some analysts and markets now expecting a potential cut in December.

• The Bank's guidance suggests interest rates are likely to continue on a "gradual downward path" if disinflation continues.

Mortgage Rates Continue to Dip

• Despite the Bank Rate being held, average fixed mortgage rates have generally continued their downward trend.

• The average two-year fixed mortgage rate dipped below 5% for the first time since September 2022.

• Lender competition is driving cuts, particularly in the high Loan-to-Value (LTV) products (90% and 95% LTV), with rates in this segment hitting their lowest level in over three years.

• Many lenders have been reducing their fixed rates, effectively "pricing in" the expectation of future Bank Rate cuts.

Housing Market and Key Events

• House prices showed continued stability or modest growth in October, with the average UK house price hitting a new record high according to some indices.7 Buyer demand remains resilient.

• A major factor creating a "wait and see" approach for some buyers is the Autumn Budget, scheduled for late November 2025.8 Speculation about potential property tax changes is causing some market jitters.

• A large number of fixed-rate deals are set to expire in the final quarter of 2025 and into 2026, meaning many homeowners are currently looking to remortgage and secure a new deal.

In a Nutshell: The central bank kept rates on hold, but the narrow vote and a generally improving economic outlook have encouraged lenders to cut mortgage rates, offering a more competitive market for borrowers, especially those with smaller deposits.10 However, uncertainty remains ahead of the Autumn Budget.