Positive News for the Property Market: Bank of England Cuts Base Rate to 4%
The Bank of England’s rate cut to 4% should ease mortgage costs and boost the property market ahead of November’s next decision.
The Bank of England has announced a welcome cut to the base interest rate, reducing it from 4.25% to 4%. This marks the fifth rate cut since August 2024 and reflects the Bank’s efforts to support the UK economy amid ongoing inflation and rising unemployment concerns.
For the property market, this reduction is encouraging news. Lower base rates generally lead to cheaper borrowing costs, which can help stimulate buyer demand. With mortgage costs easing, more potential homeowners may find it easier to enter the market or move to a new property. This increase in activity could benefit both buyers and sellers as confidence returns.
The next Bank of England base rate decision is expected in early November 2025. Until then, market watchers will closely monitor economic data and inflation trends to gauge whether further cuts or holds are likely.
What are the current mortgage rates?
Current average mortgage rates stand around 4.5% for both two- and five-year fixed deals, with the best offers closer to 3.7%–3.8%. Meanwhile, standard variable rates remain high, near 7.6%. These cuts should help ease costs for homeowners on tracker and variable deals, though those on fixed rates may not see savings unless they choose to remortgage. Future rate changes remain uncertain due to economic and global factors.
If you are considering selling your property, now could be an ideal time. Increased buyer interest driven by lower borrowing costs means your home could attract more competitive offers.
Call us today if you would like a conversation and a free valuation.
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