Easy Street Financial Services 9 Interest Rates 9 March Update – Interest Rates
March Update – Interest Rates
March 21, 2025

The Bank of England decided to hold rates at 4.5% this month.

This was a widely predicted outcome which was supported by the fact that the Monetary Policy Committee (MPC) voted 8-1 in favour of.

Although the rate was reduced by 0.25% last month, the bank still needs to weigh inflationary pressures against concerns over economic growth.

Many have predicted further cuts this year, but the bank has advised that any such move will be dependent on data as it tries to balance economic growth with its inflation target of 2%.

Mortgage Rates

Mortgage rates have remained quite stable over the last month, with a slight downward trend in the mainstream sector.

Barclays have joined the likes of HSBC in adding a ‘sub 4% interest rate’ to its product range.

Of course, not everybody will be able to access these products and they may not be right for everyone, but it’s encouraging to see rates reducing below 4% given where they have been recently.

Other lenders such as Halifax also ‘slashed mortgage rates’ in March which was encouraging.

At the moment, the average fixed rate for a mainstream product sits somewhere between 4 – 4.99%, depending on each person’s circumstances.

Our Thoughts

It’s encouraging to see rates being offered at less than 4% and by more than one lender.

Competition helps to drive down rates and hopefully this will filter through to all sectors of the mortgage market.

However, it will be interesting to see over the next quarter how the issues that are faced by the wider economy could impact the Bank Base Rate and mortgage rates in general.

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