The Bank of England announced a 0.25% cut to its base rate, bringing it down to 4%, the lowest level in two years and marking the fifth reduction in the past 12 months. If you are a property investor with existing borrowing or plans to expand your portfolio, this base rate cut offers both relief and opportunity.
Tracker & Variable Rate Borrowers Benefit From Base Rate Cut
If your mortgage is on a tracker or variable rate, you can expect to see a drop in your monthly repayments almost immediately. This improves your cash flow and could enhance the viability of refinancing or adding to your portfolio.
Fixed Rate Mortgages – Wait and See
We are yet to see how this cut will impact fixed-rate mortgages. Lenders often respond to base rate changes by adjusting their pricing models, but the pace and scale of this response varies. Some lenders may begin to offer more competitive fixed-rate products in the weeks to come, but others may wait for further stability or more base rate cuts before acting.
What Should You Do Next?
If you are an active or aspiring investor:
- Review your mortgage terms and understand how the cut affects your current repayments.
- Speak with your broker (we are here to help) to see what options are now open for you.
- Stay informed – future rate cuts may follow, but now is the time to get ahead of the curve.
Watch this video to hear Karl Griggs’ initial thoughts on the announcement and what it could mean for you.