Comment from Phoebus on base rate decision

18 December 2025

Reaction from Richard Pike, chief sales and marketing officer at Phoebus Software, to today’s base rate reduction to 3.75%:

“The Bank of England has delivered an early Christmas present for homeowners with its decision to cut the base rate, the fourth reduction this year. The decision was widely expected, particularly considering yesterday’s fall in inflation, and we’ve seen mortgage rates reducing in the past few weeks in anticipation of the announcement. This will help alleviate affordability pressures for households and unlock greater borrowing potential and support increased mortgage activity – providing a much-need boost for the market.

“The base rate is now at its lowest level since early 2023, and we can expect to see the rate continue downwards throughout 2026 as price pressures continue to ease, although the Bank will continue to adopt a careful and gradual approach in the light of continuing economic pressures.”