Bank of England Cuts Interest Rates for First Time in Four Years

Bank of England Cuts Interest Rates

News just in – As of 1st August, the Bank of England has announced a reduction in the base interest rate from 5.25% to 5%. UK interest rates were at a 16 year record high, and this move is the first interest rate cut in over four years and is welcome news for the housing market.  This decision was driven by several key factors that reflect the current economic landscape and future projections.  Whether you’re buying or selling a home or property investment, this change in base rate is significant for everyone involved in the housing market. Let’s take a closer look at what this means for you. 

For Home Buyers:

• Lower Monthly Payments: With a reduced interest rate, your monthly mortgage payments could be lower, making home ownership more affordable. 
• Higher Loan Approval Chances: Banks and lenders are more likely to approve loans due to more favourable borrowing conditions, with better mortgage deals coming through from lenders, this could increase your chances of securing a mortgage.
• Increased Buying Power: You might be able to afford a more expensive property than previously thought possible due to lower borrowing costs. 

For Home Sellers:

• Increased Buyer Interest: More affordable mortgages will attract a larger pool of potential buyers, increasing more demand for your property. 
• Higher Property Values: With increased demand, property values are likely to stabilise or even rise, ensuring you get the best possible price for your home. 
• Faster Sales: A more dynamic market means that homes are likely to sell more quickly, reducing the time your property spends on the market. 

Let’s navigate this together! Speak to Clyde’s financial services company, Hub Financial for expert, whole of market mortgage advice. Hub’s expert team are here to provide you with the guidance and support you need to make the most of this positive news.