Interest Rate Decision announced by Bank of England

The Bank of England’s monetary policy committee has announced its latest base rate decision.

The rate has been cut today from 4.75% to 4.5% – it’s the lowest base rate since June 2023.

Some 630,000 households have tracker mortgages so will see an immediate impact – a cut of about £29 a month. A similar number of households have variable rate deals, and lenders will now be expected to cut their in line with the BoE.

Fixed-rate deals do not change immediately, but the expectation of further rate cuts could lead to new borrowers, or those renewing existing loans, getting a better deal.

In response Sarah Thompson, managing director of Mortgage Scout, says: “Lenders like Barclays have already responded, cutting rates on selected mortgages and introducing new deals for energy-efficient homes. Falling swap rates, which influence fixed-rate mortgage pricing, suggest a broader trend towards improved lending conditions, with five-year swaps dropping from 4.12% to 3.92% in recent weeks.

Read the full article at Landlord Today