Base rate stays at 4.25% but it is likely to come down soon

by Aaron Strutt

Jun 19 2025

The Bank of England base rate has been kept at 4.25% for June, with Governor of the Bank of England, Andrew Bailey, saying "interest rates remain on a gradual downward path" but cautions "the world is highly unpredictable."

At its meeting ending on 18 June 2025, the Monetary Policy Committee voted by a majority of 6–3 to maintain bank rate at 4.25%. Three members preferred to reduce bank rate by 0.25 percentage points, to 4%. 

Forecasters are still expecting two further rate cuts this year, followed by one early next year, which would bring the base rate to 3.50%.

David Morris, head of homes at Santander said this year's rate cuts 'are already "priced in" to mortgage rates, meaning that market-leading rates should continue to hover around the top end of the threes or lower end of the fours'. 

He added: 'In practice home buyers trying to play the market and wait for the return of ultra-low rates may well be waiting for some time.'

Should you take a two or five-year fix?

Many of Trinity Financial's clients are still opting for two-year fixed rates rather than five-year fixes because they believe rates will decrease. This does not seem unreasonable given that the Bank of England base rate is still expected to come down, and given the current economic conditions.

For those who prefer longer-term payment security, competitively priced three- and five-year fixes are available.

Call Trinity Financial on 020 7016 0790 to secure a mortgage, book a consultation, or complete our mortgage questionnaire. 

The information contained within was correct at the time of publication but is subject to change.

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