Interest Rates cut by 0.25%
- karensmarsh
- May 8
- 2 min read
We are genuinely pleased to see the Bank of England’s decision to cut the base rate by 0.25%, bringing it down to 4.25%. This move is a much-needed boost for the property market, especially after a prolonged period of high interest rates that have put significant pressure on affordability for buyers and homeowners alike.
Lowering the base rate is expected to make mortgages more accessible, which is excellent news for first-time buyers and those needing to remortgage. Many have been struggling with high monthly payments, and this reduction should help ease those burdens. In fact, experts are already noting renewed confidence in the market, with remortgage searches up by 34% in the first quarter of the year as borrowers look for better deals.
Interest Rates below 4%
Mortgage rates have already started to come down in recent weeks, and with lenders competing for market share, we are hoping there will be further reductions in the near future. Some major lenders now offer fixed rates below 4%, a significant improvement compared to just a few months ago. This trend should provide greater affordability and open up more options for buyers, helping more people achieve their property ownership aspirations.
We know some of our clients, long for the days, when taking on a mortgage, it didn’t feel like it would cost an arm and a leg. While we’re not quite back to those times, the current direction of travel is encouraging. If the base rate continues to fall, as many predict, we could see even more positive momentum in the property market, benefiting buyers, sellers, and the wider economy.
Overall, this rate cut is a welcome step towards making home ownership more achievable again and restoring some much-needed optimism to the housing sector.
For more details, you can read the full article here: Bank cuts rate by 0.25% to boost property market.
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