The Bank of England has made another move to stimulate the UK economy by cutting the Base Rate for the second time this year, bringing it down to 4%. The decision, announced today, follows a 0.25% reduction agreed by the Monetary Policy Committee (MPC) despite inflation remaining above the Bank’s 2% target.
Update, October 2026: the picture has moved on since this announcement. The MPC delivered a further cut in December 2025, taking the Base Rate to 3.75%, where it has been held at every meeting since. For today’s homeowners and buyers, the sections below explain what that trajectory has meant in practice.
A Continued Push for Economic Growth
This latest rate cut marks the third reduction in the past 12 months, reflecting ongoing efforts to support businesses and households amid persistent economic headwinds. Lower interest rates typically encourage borrowing and spending, which can help boost economic activity during periods of sluggish growth.
Inflation Still Above Target
Despite this latest move, inflation remains stubbornly above the Bank’s 2% goal. Critics argue that further cuts could prolong inflationary pressures, but the MPC appears focused on ensuring the economy doesn’t slow too sharply heading into 2026.
More Cuts on the Horizon?
Market analysts and financial commentators suggest this may not be the last adjustment we see this year. Many are predicting at least one more rate cut before the end of 2025, as policymakers continue to balance the delicate relationship between inflation control and economic stimulation.
That prediction proved accurate. A further reduction arrived in December 2025, taking the Base Rate to 3.75%, and the Bank has since chosen to hold at that level while it watches inflation and the wider economy.
What Falling Rates Mean for Mortgages
For most homeowners and buyers, the Base Rate matters because of what it does to mortgage pricing. As the rate has fallen from its peak, lenders have passed much of the improvement into fixed-rate deals, and competition between lenders has kept the best rates moving down.
If you are on a tracker or standard variable rate, the cuts flow through automatically. If you are coming to the end of a fixed deal in the coming months, it is worth speaking to a broker early: many lenders allow you to lock a new rate several months ahead, protecting you if the market moves against you before your current deal ends.
What It Means for the Wigan Property Market
Every reduction in borrowing costs feeds directly into buyer affordability. For a typical Wigan buyer, the difference between the rates of two years ago and today is meaningful monthly budget headroom – and that shows up in more confident viewing activity and more realistic offers.
We have seen the effect locally: a market that settled into a healthy balance through 2025, with steady prices, motivated buyers and well-presented homes selling well. Lower rates support that stability rather than reigniting a boom.
What does this mean for you?
If you’re a homeowner, landlord or buyer, now is a good time to reassess your plans. Lower rates can affect remortgaging, savings and what you can realistically afford – and if a move is on your mind, a free, no-obligation valuation will show you exactly what your home could achieve in the current market.
