Base Rate decision comment "Pace of change likely to remain ultra-cautious"

05 February 2026

Steve Cox, Chief Commercial Officer at Fleet Mortgages, on today’s Bank Base Rate decision:

“Today’s decision by the Bank of England to hold Bank Base Rate at 3.75% comes as no surprise, particularly after inflation edged up slightly to 3.4% last month. With a cut already delivered in December, and the Bank keen to avoid moving too quickly, this pause was widely expected. That said, the broader expectation is still for inflation to fall through the year, which could pave the way for two or possibly three cuts to BBR during 2026, potentially taking us down to 3% by the end of the year. That may provide advisers and their clients with some degree of forward visibility but with no guarantees, and one suspects, that the pace of change is likely to remain ultra-cautious.

“In the buy-to-let market, pricing has continued to trend downwards during January as lenders, including Fleet, moved early to price competitively and secure business. We made further reductions to our own product range last week and introduced new 65% LTV products. However, with swap rates having crept up in recent weeks, there’s now a case for landlords to act sooner rather than later. If upward pressure on funding costs persists, we may well see product pricing shift in the other direction. Advisers should be reviewing client circumstances now, especially for borrowers whose product rates are due to end in the first half of the year.”