Strategic Stability: Lending Implications of the September Base Rate Hold
The Bank of England’s decision to hold the base rate at 4.00% in September, following August’s 0.25% cut, represents a measured pause. Inflation remains above target, but it is easing, energy prices are rising, and early signs of slack in the labour market are emerging. Against this backdrop, the Budget in November is expected to be the next major catalyst for market movement.
This period provides welcome clarity. Lender sentiment remains constructive, and the absence of immediate change creates the opportunity to revisit client borrowing strategies with confidence.
Lending Environment
- Lenders remain active across high-value segments
- Private banks continue to offer bespoke, asset-backed, and cross-border facilities
- Affordability frameworks are being refined for self-employed, investment-backed, and later-life clients
Implications Across Client Profiles
- Refinancing: Clients exposed to SVRs or legacy borrowing still stand to benefit from restructuring
- Acquisition Funding: Appetite for high-value transactions is strong, particularly for diversified asset holders
- Later-Life Lending: Borrowing remains available into later life, where assets and income support the case
- Cross-Border Clients: The high-value market continues to be well served, with lenders prioritising profile and relationship over rigid criteria
Our Message to Your Client: There is an Advantage in Acting Now
This is a stable but temporary window. Currently, no further cuts are expected this year, and the Budget may drive borrowing costs higher through repricing, even if the MPC holds steady in December. By securing terms today, clients gain protection and optionality, with the flexibility to switch to better products if they emerge.
Supporting Your Client Conversations
For wealth managers, accountants, solicitors, and private client advisers, this is an ideal moment to advise clients to revisit existing mortgage arrangements and confirm they are still fit for purpose. Lending appetite remains strong, and the groundwork laid today will shape client outcomes well into 2026.