Bank of England Cuts Base Rate to 4.5%
Good news for homeowners and buyers—the Bank of England has lowered the base rate to 4.5%, down from 4.75%. This is the first rate cut since November last year and could bring welcome relief to mortgage borrowers.
What This Means for Borrowers
With the base rate now at 4.5%, mortgage lenders are likely to adjust their rates, making borrowing more affordable. Fixed-rate mortgage rates have already been dropping in anticipation of this cut. Hopefully, we may see even better deals in the coming weeks.
For first-time buyers and those looking to move, this rate reduction could make getting on the property ladder more manageable.
Impact on Homeowners with Existing Mortgages
If your mortgage deal is ending in the next six months, this rate cut is a positive sign. While payments may still be higher than they were a few years ago, the market is becoming more stable. If rates keep falling, you might even be able to switch to a better deal before your new mortgage kicks in. However, mortgage rates can change quickly, so it’s important to get expert advice before making any decisions.
The Bigger Picture
A lower base rate can boost the economy by making borrowing cheaper. It also increases confidence in the housing market, which estate agents are already seeing with a rise in enquiries. If you’ve been holding off on moving due to uncertainty, now could be the time to start looking again.
What’s Next?
If you’re thinking about moving home, remortgaging, or buying your first property, now is a great time to review your mortgage options. At Prospect Tree Mortgages, we’re here to help you understand your choices and find the best mortgage for your situation.
Get in touch with our expert advisors today to discuss how this base rate cut could benefit you. We aim to ensure you make the most of the opportunities available.
Call us at 0800 8620 840 or visit our website at www.ptmortgagesltd.co.uk to learn more.
Your home may be repossessed if you do not keep up repayments on your mortgage. the information contained within was correct at the time of publication but is subject to change, 06.02.2025.
If you’d like to learn more about mortgage products and how we can help you, please don’t hesitate to get in touch with our team. We’re here to help you navigate the ever-evolving world of mortgages and guide you toward a brighter, greener home.