BoE Base Rate Cut to 4%: Why Now’s a Great Time to Make Your Move
Base rate cut boosts confidence across the property market.
The recent base rate cut from the Bank of England has added a welcome sense of momentum to the property market, offering renewed confidence to buyers, movers, and sellers across the UK. While the change may not significantly alter the cost of fixed rate mortgages, it does strengthen an already improving landscape for homeownership.
Fixed mortgage rates tend to reflect expectations for future interest rate movements, so most lenders had already priced in today’s decision. This means mortgage rates are likely to remain broadly stable. However, changes to the way banks assess mortgage affordability have had a far more immediate and powerful effect.
Recent updates to lending criteria have increased what people can borrow by up to 20%, even without any drop-in average mortgage rates. This shift has already fuelled an unseasonably active housing market, with the highest number of homes for sale in over seven years. The base rate cut adds further positivity to the picture, reinforcing consumer confidence and encouraging more people to take the next step on the property ladder.
Many lenders are currently offering highly competitive deals, and with buyer sentiment continuing to rise, it's a smart time for prospective homeowners to explore their options. Speaking with a mortgage broker can help buyers understand what they can now afford and make the most of current market conditions.
Improved affordability and stronger demand mean more potential buyers are in a position to move forward. With more homes coming to market and interest levels high, sellers stand to benefit from increased visibility and a greater chance of achieving a smooth, successful sale.
Call us today if you would like a conversation and a free valuation.
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