Today, news broke across the UK that the Bank of England have cut interest rates from 4.25% to 4%, the lowest level in 2 years.
Whilst lower interest rates can impact savings negatively, generally lower rates make taking out loans more affordable and have a positive impact on the economy, but what does this mean for homeowners and buyers?
For first-time-buyers or those looking to take out a new mortgage, now may be the perfect time to do so! With the new Bank of England base rate, you can likely get yourself a great deal with mortgage rates expected to drop to the lowest they have been since they peaked in August 2023.
Likewise, those with a variable mortgage rate will reap the benefits of the rate drop. Moneyfacts calculated that for those with a standard variable rate mortgage of £250,000 over 25 years should see repayments fall by £40 per month.
On the other hand, homeowners soon to be coming off a 2- or 5-year fixed rate can sleep easier at night knowing they can expect new competitive mortgage rates.
Helen Pritchard, Sales & Marketing Director at Shropshire Homes is pleased to hear the news, “With today’s announcement from the Bank of England, we expect to see mortgage rates also drop, offering our home buyers competitive rates and better affordability.”
Shropshire Homes also offer several buying schemes to help purchasers make buying their dream home a reality. To find out more, head over to our Help with Buying page: https://www.shropshire-homes.com/help-with-buying
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