May 8th, 2025
If you’ve been following the news recently, you’ll know interest rates have been closely monitored. We have a welcome update: the Bank of England has announced a cut to the base interest rate, lowering it to 4.25%.
With the base rate going down, mortgage rates will also be lower, meaning the real effect will be felt by homeowners, first-time buyers and anyone thinking of remortgaging.
Whether you’re already on the property ladder or just getting started, this change could influence what you pay – or how much you can borrow – in the months ahead.
What Does This Mortgage Rate Drop Mean?
When the base rate falls, lenders usually respond with lower mortgage deals, with some already doing it.
If you’re on a tracker or variable-rate mortgage, you could see your monthly payments go down soon. It might not seem like much initially, but the savings can build over time, especially on larger loans.
If you’re on a fixed-rate deal, your payments won’t change for now. But if your current deal is ending soon, it’s worth paying attention. Falling rates often bring more competitive fixed-rate options, so this could be a good time to explore what’s available.
For first-time buyers, the picture is also bright. Lower rates can mean smaller monthly repayments and greater affordability, possibly opening doors to homes that felt out of reach just a few weeks ago.
What Should You Do Next?
Whether you’re remortgaging, buying your first home, or just weighing your options, staying ahead of the market will help you make better-informed decisions. Reviewing your mortgage strategy and acting soon could save you money you didn’t even know you could have!
So, if you need help navigating your options or want to review your current mortgage deal, we’re here to help. Don’t hesitate to get in touch with us to discuss the best next steps for you.