Market Update November 2025

The Bank of England held Bank Rate at 4.00% this month, signalling confidence that inflation is easing without yet declaring victory. After several earlier reductions throughout 2025, policymakers are now taking a steadier approach, waiting for clearer evidence that price pressures are firmly under control before cutting again.

 

For mortgages, the bigger story has been in the money markets. Swap rates which heavily influence fixed-rate pricing have continued drifting lower through autumn. As a result, many lenders have gradually reduced fixed-rate deals, with competition returning across both residential and buy-to-let products. These changes haven’t been dramatic, but they do point to a more supportive environment than we saw last year.

 

Housing activity also looks healthier. Mortgage approvals have been edging up, new enquiries are rising, and arrears appear to be stabilising rather than accelerating. Affordability remains tight, but confidence is slowly rebuilding as households gain greater certainty over where rates may settle.

 

For anyone with a mortgage deal expiring in the next 6–9 months, this period offers an opportunity to plan ahead. Securing a new rate early can lock in today’s improvements, while most lenders still allow clients to switch to a better product if pricing falls further before completion.