By Scott Craig

The Bank of England has reduced the base rate from 5.25 to 5%. This is the first rate cut since interest rates rose dramatically from near zero in early 2022

The drop will come as a welcome relief for existing borrowers with variable rate mortgages.

We hope to see banks and building societies start to pass on the reductions to new borrowers through lower mortgage interest rates on their products soon.

References

https://www.bankofengland.co.uk/monetary-policy-summary-and-minutes/2024/august-2024

https://www.which.co.uk/money/mortgages-and-property/mortgages/getting-a-mortgage/bank-of-england-base-rate-and-your-mortgage-a834w6K7aXQh

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