Phoebus reacts to base rate announcement - hold at 3.75%

30 July 2026

Richard Pike, sales and marketing director at Phoebus Software to today’s base rate announcement:

"A decision to hold rates is unlikely to come as a surprise. With inflation continuing to moderate and recent GDP figures pointing to a softer economic backdrop, the MPC has room to pause while it assesses how previous policy decisions are feeding through to the wider economy.

"That said, borrowers shouldn't assume that a hold automatically means mortgage pricing will remain unchanged. Fixed-rate pricing is driven as much by swap rates and lenders' funding costs as it is by Bank Rate itself. Swap rates have been volatile since the start of the US-Iran conflict, and a number of lenders have repriced upwards in recent weeks despite expectations that the base rate would remain on hold.

"For lenders, managing that uncertainty is now part of the day-to-day challenge. The ability to respond quickly to changing funding costs, launch products efficiently and manage servicing portfolios effectively has become increasingly important in a market where pricing can move rapidly.”