Bank of England cuts interest rate by 0.25% – what it means for homeowners and buyers

The Bank of England has once again met to review the UK's base interest rate, as it does every six weeks. In a welcome move for homeowners, first-time buyers, and business owners, the base rate has been reduced by 0.25%.

Although some had predicted a 0.5% cut, this modest reduction continues the broader downward trend, in an encouraging sign for the property market.

As interest rates continue to fall, there's growing interest in variable-rate and tracker mortgages, which adjust in line with the base rate.

If you're considering this type of mortgage, today's news could work in your favour. However, if you're on a fixed-rate mortgage, your monthly payments will stay the same until your deal ends.

There's still plenty of reason for optimism. Many lenders are now offering fixed-rate mortgage deals below 4%, anticipating further rate cuts in the coming months.

With around 1.8 million fixed-rate mortgages set to expire in 2025, this shift could benefit a wide range of people, from those looking to remortgage to first-time buyers trying to get on the property ladder.

We spoke to Nicola Henton, one of our expert Head of Finanical Services, to get her thoughts on the current market:

"This rate drop has been expected for some time and continues the steady downward trend in interest rates. Many lenders are already adjusting their products to reflect this change which is good news for our clients.

if your mortgage is still in progress, your adviser should already be reviewing your deal to make sure you're getting the best available rate for your situation. If you haven't heard anything yet, don't hesitate to reach out and ask—it's important to make sure you're in the best position possible."

Disclaimer: This article is for general information only and does not constitute personalised financial advice. Always speak to a qualified mortgage adviser to assess what's right for your individual circumstances.

YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

Past interest rates are not an indicator of future interest rates; rates can rise and fall.

‍