With the Bank of England reducing its base rate to 5%, down from 5.25% since August 2023, many are curious about how this change will affect the mortgage market in the coming months.

Recently, we’ve seen some mortgage rates start to drop, which is encouraging for potential buyers. According to Matt Smith, a mortgage expert at Rightmove, we can expect rates to continue to decrease slightly, though significant shifts are unlikely.

What does the cut mean for you?

Fixed Rate Mortgages:  If you’re on a fixed-rate mortgage, your monthly payments won’t change until your current term ends.

Variable or tracker mortgages:  These are influenced by base rate fluctuations, so those on a variable or tracker mortgage can expect to see a reduction in their monthly payments.

Is your Fixed Rate coming to an end?

If your fixed-rate mortgage is nearing its end, now is a great time to explore new mortgage options. You can start discussing this with your mortgage adviser up to six months before your current deal ends to secure a favorable rate. Starting this process early can help you avoid defaulting to your lender’s Standard Variable Rate.

For personalised advice from our award winning mortgage advisors, reach out to to us. We offer appointments in person, over the phone, or via video call - whichever suits you best.