Interest rate cut means now could be the perfect time for your home purchase

The Bank of England has announced an interest rate cut to 4.75%, which is positive news for anyone searching for a new home.

The update from the Bank of England that UK interest rates have been cut from 5% to 4.75% is a promising sign if you’re considering buying a home.

With the announcement bringing the rate to the lowest it’s been since June 2023, prospective homeowners can welcome the news after a period of high borrowing rates.

What will this mean for you?

If you’re a first time buyer wanting to step onto the property ladder, the rate reduction is good news as you might be able to access lower mortgage rates than were previously available.

Given the recent Autumn Budget, in which we learned that first time buyers in England Northern Ireland will have to pay more in Stamp Duty from 1^st April 2025, this could be the perfect time for you to secure your first home.

For anyone currently paying a mortgage, the news will have a different impact depending on the type of mortgage you’re on. If you’re on a tracker mortgage you will see your rate come down, while if you’re on a fixed mortgage deal you won’t see a change yet. However, it could be a good idea to look at new deals if yours is ending soon.

Ollie Peace of mortgage specialists James Leighton Financial Services, agrees that the update is welcome news for anyone looking to purchase a home.

“Today’s Bank of England decision to reduce the Base Rate by 0.25% to 4.75% is encouraging news for homebuyers, especially given the Autumn Budget.

“Gradual rate reductions forecast over the next 2 years should enhance borrowing power, making homeownership more accessible for many.

“I expect mortgage product rates to stay relatively steady—within a range of +/- 0.25% over the next 12 months—assuming global inflation pressures remain under control.”

Discover more information about your mortgage options, and our range of energy-efficient premium homes available to buy.