How does the Bank of England Base Rate cut affect your current or future mortgage plans?

The Bank of England cut the Base Rate by 0.25% today, taking it from 4.00% down to 3.75% (and it was a close vote). That’s the big headline — but what it means in real life depends on the type of mortgage you’re on.

Let’s keep it simple.

If you’re on a fixed rate

Nothing changes today. Your rate (and payment) stays the same until your fixed deal ends — that’s the whole point of a fix.

However… this cut can still matter for you later, because it can influence what deals are available when you next switch. New fixed rates are driven a lot by market expectations (swap rates), so they don’t always move in a neat straight line with the Base Rate.

If you’re on a tracker

This is where you’re most likely to feel the change quickly.

A tracker usually follows the Base Rate plus (or sometimes minus) a set margin, so a 0.25% Base Rate cut normally means your mortgage rate drops by 0.25% too (check your lender’s timing).

Small print to watch:

  • Some trackers have a “collar” (a minimum rate), which can limit how much you benefit from future cuts.

If you’re on your lender’s SVR (standard variable rate)

SVR is the rate many people drop onto when their deal ends — and it’s set by the lender, not the Bank of England.

So will it go down after today’s cut? Maybe. Lenders often adjust SVR when the Base Rate moves, but they don’t have to match it.

(Also: SVR is often noticeably higher than the “proper deals”, which is why it’s worth keeping an eye on.)

If your fixed rate is ending soon

This is the group I’m most keen to help, because timing makes a big difference.

When a fixed deal ends, you’ll usually move onto your lender’s SVR unless you line something up. That can mean a jump in payments.

The practical tip: start looking a few months before your deal ends, so you can avoid falling onto SVR and give yourself options.

You typically have two routes:

  1. Product transfer (switch to a new deal with your current lender) – usually quicker and lighter on admin.
  2. Remortgage (move to a new lender) – more choice across the market, potentially better value, but more paperwork and checks.

We’ll look at both options and advise you on the best way to go.

So… what should you do now?

Here’s the no-faff checklist:

  • Fixed? Nothing changes today — but if your deal ends in the next 6 months, it’s a good time to plan your next move.
  • Tracker? Check your rate and watch for your lender’s update — you should see it reduce in line with the cut (unless your deal has a collar).
  • SVR? Worth reviewing. Even a small rate improvement elsewhere can make a big difference over time.

Want a quick, plain-English review?

If you tell me:

  • what type of mortgage you’re on (fixed/tracker/SVR)
  • when your deal ends
  • roughly what rate you’re paying

…I’ll point you in the right direction and let you know what your best next steps usually look like.

Ready to speak to an Adviser?