Savers will have “rich pickings” ahead of the new tax year as the Bank of England base rate remains on hold, but homeowners coming to the end of a fixed mortgage will be disappointed, finance experts said.
The base rate was kept at 4.5% on Thursday, with policymakers warning that uncertainty over global trade has intensified following new US tariffs.
About 1.8 million fixed-rate mortgage deals are due to end or have already ended in 2025, according to figures from UK Finance.
Alice Haine, personal finance analyst at Bestinvest by Evelyn Partners, said: “Those grappling with heavy debts or large mortgages that need to be refinanced are likely to be concerned that interest rates aren’t easing as fast as hoped.
“For savers, however, the news offers more hope as it raises the prospect of savings rates remaining on the higher side for longer.
“However, cost-of-living concerns are back on the table and households are also weighed down by a heavier tax burden as a result of personal allowances remaining frozen until at least 2028 and more people getting drawn into higher rates of tax as their income increases.”
Mark Hicks, head of active savings, Hargreaves Lansdown, said the base rate hold “means rich pickings as the deadline approaches to take advantage of your Isa allowance”.
While the hold in the base rate may help to keep savings rates buoyed up, financial information website Moneyfactscompare.co.uk said average rates across easy access and notice accounts have been edging down.
The average easy access savings rate fell from 2.92% to 2.85% between the start of February 2025 and early March 2025, and the average easy access Isa rate decreased from 3.06% to 3.03% over the same period, according to its data.
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Rachel Springall, a finance expert at Moneyfactscompare.co.uk, said: “A dip in rates should not deter savers from taking full advantage of their Isa allowance before the 2024-25 tax year ends.
“The stickiness of inflation, coupled with a freeze to income tax thresholds and tax-free savings allowances, means it’s more vital than ever for consumers to be proactive with their money and ensure they are earning a decent return.”
Jenny Ross, editor of Which? Money, said that with the end of the financial year looming on April 5, savers would “be well advised to review their rates to make sure their money’s working as hard as it can.
“Our research has found that digital banks and building societies have consistently outperformed traditional high street banks’ rates, so remaining loyal to a longstanding provider could be a costly mistake.”
Matt Smith, a mortgage expert at Rightmove, said lenders do not have much “wiggle room” to offer cheaper rates.
He said: “Since the last decision in February, average mortgage rates have trickled downwards slightly but pretty much stayed flat. We’re seeing lenders try to price competitively where they can to capture business during some of the busiest months of the year for home moving.”
Mr Smith said some lenders may have priced their mortgages to protect their operational capacity as a stamp duty deadline looms.
From April, stamp duty discounts will be less generous for some home buyers. Stamp duty applies in England and Northern Ireland.
Mr Smith said: “As the stamp duty deadline will pass soon, they could then release this capacity and, as a result, we may see some lenders start to price even more competitively.”
Andrew Montlake, chief executive of Coreco mortgage brokers, said: “I still expect to see another two or three cuts by the turn of the year.
“It does not necessarily follow, however, that mortgage rates will reduce substantially any time soon, and it is interesting to see that two-, three-, five- and 10-year swap rates (which are used by lenders to price mortgages) are converging on the 4% level.
“As such, we expect mortgage rates to be relatively benign for the remainder of the year, with dips up and down due more to competitive pressures amongst lenders rather than any great trend.”
David Hollingworth, associate director at L&C Mortgages, said homeowners coming off fixed-rate mortgages will find themselves in varying positions, which may depend on when they took their previous deal out.
He said: “Those that fixed for a couple of years during the peak of the mini budget volatility could be delighted to see the back of their deal.
“On the other hand, there are still swathes of borrowers edging toward the end of an ultra-low fixed deal that has given them protection from the rate hikes over the last five years.
“They will be bracing themselves for a hike in payments despite the improvements in the market, as rates have edged back down.
“Shopping around for the best rates and taking advice will help them.”
Simon Gammon, managing partner at Knight Frank Finance, said: “In recent weeks we have seen small rate reductions to some mortgage products. However, lenders are keener than ever to lend so, in addition to rate reductions, we have also seen adjustments to underwriting criteria.
“In many cases this has increased banks’ generosity to lend and widened out the availability of certain mortgages to borrowers who now fit the revised criteria.
“Additionally, the spring marks the start of a new financial year for many of the lenders, which will mean fresh lending targets. All this can lead to an increase in competition and push further reductions in pricing.”