September Base Rate Prediction: What Homeowners Need to Know

This week is set to be another important one for the UK economy, with inflation data due on Wednesday and the Bank of England’s latest interest rate decision following on Thursday. As a Mortgage Advisor at RBM Solutions, I’ve been keeping a close eye on the numbers here’s my take on what we can expect.

Where we are now
In August, the Bank of England cut the base rate by 0.25%, bringing it down to 4%. This was a small but significant move, showing the Monetary Policy Committee’s (MPC) willingness to ease policy while still keeping inflation in check.

The inflation picture
At present, inflation remains elevated at around 3.8%. Forecasts suggest it could peak at 4% in September, which is still above the Bank’s target and a key reason why the MPC is being cautious with further cuts.

What markets are saying
According to a recent Reuters poll, markets expect only one more cut this year, most likely in November. This gives weight to the view that the MPC will hold rates at 4% in September, keeping a steady hand while they monitor the latest data.

What this means for homeowners
For those on tracker or variable-rate mortgages, a hold means payments will remain stable in the short term. For buyers and those looking to remortgage, this period of stability could offer a chance to make decisions with more confidence, knowing where rates are likely headed in the near term.

At RBM Solutions, we’re here to help you navigate these changes and understand how they impact your personal situation. Whether you’re planning a move, looking to remortgage, or simply want clarity on your current deal, I’d be happy to chat things through.

📩 Get in touch with me at jack@rbmsolutions.co.uk for advice tailored to your circumstances.

— Jack, Mortgage Advisor at RBM Solutions