This is a historical report about the Bank of England decision announced in August 2025. It was checked on 16 October 2026 and does not state today's Bank Rate or advertise a current mortgage deal.
The dated decision
At the meeting ending on 6 August 2025, the Monetary Policy Committee decided to reduce Bank Rate by 0.25 percentage points, from 4.25% to 4%. The final decision was supported by five members, with four preferring no reduction.
The distinction between a percentage-point change and a percentage change matters. The announcement concerned the policy rate; it did not promise that every lender would quote the same mortgage rate.
The mortgage contract determines the effect
A fixed mortgage rate normally stays unchanged during its agreed fixed period. A borrower therefore does not automatically receive a lower contractual rate when Bank Rate falls.
A tracker follows the benchmark specified in its terms, while other variable rates depend on the product and lender. Check the contract and any lender notification to understand whether a change applies and when the payment changes.
Separate history from a decision today
The imported article included mortgage averages and forecasts from 2025. They have been removed so that historical figures are not mistaken for available offers.
For a current comparison, obtain a dated quotation and consider fees, the period covered and any early-repayment conditions alongside the headline rate. Speak to the lender or an appropriately qualified adviser about the actual product. A historical rate decision is background information, not a forecast or a personal recommendation.