Bank of England holds interest rates at 4.5% as market shows signs of stabilising.

The Bank of England met today at noon to discuss the interest rates. The result of the meeting was to freeze the interest rates at 4.5%. The rates were lowered on the 15th of January from 4.75% to 4.5%. The rates in the 2020s (so far) have been, on average, at 5.25%, with the highest rates being 5.25% and the lowest being 0.10% in 2020.

The freeze on the interest rates is another encouraging development for people looking to get onto the property ladder or refinance their homes.

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However, with the tax-free threshold on stamp duty being cut in half as of April 1st, 2025, homebuyers may need to re-budget anyway to account for other expenses. Borrowers of variable rate products, including the standard variable rate, will not experience any changes to their monthly payments.

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Nicola Henton, Mortgage Protection Adviser, commented:

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"The decision to hold interest rates at 4.5% is a positive sign that the market is beginning to stabilise. Combined with recent changes to stamp duty, this could create more certainty for buyers and homeowners alike.

"While the upcoming reduction in the tax-free threshold may require some buyers to re-evaluate their budgets, a more stable rate environment should provide confidence for those looking to purchase or refinance in the coming months.”

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For more information, click here.

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Important Reminder: Your home may be repossessed if you do not keep up with mortgage repayments. 

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To find out how Hello Mortgage can help you today!

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Call us at 0800 292 2557 or Email us at hello@hellomortgage.co.uk