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Bank of England cuts base rate to 3.75%

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Bank of England cuts base rate to 3.75%

The Bank of England has voted to cut the ‘base rate’, which is used to set interest rates at major banks and building societies, by 0.25 percentage points to 3.75%.

That means mortgage rates might fall slightly off the back of this – but savings rates may fall too.

For anyone thinking of taking out a mortgage or remortgaging in the near future, keep an eye on rates and make sure to lock in the best deal. If you have a deal locked in, ask your broker or lender whether you can move onto a lower rate.

For savers, make sure you’re still in the most competitive savings accounts. Banks are often quick to lower savings rates when the base rate falls. Don’t let them get away with it – switch to providers offering more competitive rates.

Challenger banks and online-only banks often offer more competitive rates than traditional high street lenders, so make sure to check those too.

Check out our top picks for cash ISA providers here.

Clare West
Clare West Finance Editor

As a finance writer and editor, I can’t make decisions for you because only you know what’s right for you, and your personal priorities and goals. My role is to understand the things that are going to be important to you, remove anything that could work as a barrier to understanding, and then ensure you don’t miss a thing.

It’s an approach that has won me awards from professional bodies (‘Website of the Year’ at the Professional Adviser Awards 2021; Finalist – ‘Start Up of the Year’ at the UK FinTech Awards 2025) and seen me featured in the press as a commentator and expert.

Finances are about so much more than numbers on a page. Achieving your financial goals allows you to feel peace of mind, have confidence in your future, and achieve the things that matter to you. Financial wellbeing allows for life goal fulfilment.

I’ve spent more than a decade specialising in writing about financial services, so I know that in financial services, trust is absolutely vital. I am delighted, therefore, that everything we do at Investing Insiders centres around trust. Our mission is to write honest reviews based on our personal opinions and professional insights. We are not swayed in our opinions by incentives or influences from providers. Where we have a relationship with a provider that could affect our neutrality, we will let you know. But we are clear; whatever relationship we have with providers, our reader comes first. Simply put, we can’t be paid to change our opinion. My obligation is to you, the saver or investor, looking to build your wealth and protect your future.

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