Base rate cuts signal falling mortgage rates and rising opportunities.
The recent cut to the Bank of England base rate – now at 4.25% – has reignited optimism in the UK property market. For both buyers and sellers, this marks a turning point that signals better borrowing conditions are on the horizon. But when exactly will mortgage rates start to fall – and what does it mean for you?
The good news is that changes are already underway. Tracker mortgages, which follow the base rate directly, have already begun to fall, offering immediate relief to those on variable products. Standard Variable Rates (SVRs) are also adjusting, with lenders expected to pass on reductions by early summer.
Fixed-rate mortgages, however, move at a slightly slower pace. These deals are influenced by long-term interest forecasts and market confidence, rather than just the current base rate.
That said, we’ve already seen some promising signs – with some two-year fixed deals dipping below 4%, and five-year fixes not far behind. As inflation continues to ease and financial markets stabilise, further rate cuts are expected through the second half of 2025 and into 2026.
For buyers, this means affordability will gradually improve, unlocking greater choice and financial flexibility. For sellers, falling mortgage rates bring more active buyers to the market, boosting demand and encouraging stronger offers.
In short, the direction of travel is clear: mortgage rates are on the way down. While we may not return to the ultra-low levels seen during the pandemic, more accessible and competitive lending is well within reach. Whether you're planning to buy, sell, or remortgage, this is a positive time to prepare and act. The outlook for the housing market is bright – and momentum is building in the right direction.
