Finally, the news we've all been waiting for.
The Bank of England announced today that the current base rate of 5.25% will reduce to 5.0%
This is a significant development for the UK economy, marking the first rate reduction since the pandemic in March 2020. This move follows a period of inflation stability at 2% over the last two months.
What does the latest base rate cut mean for your mortgage?
If you have a tracker mortgage, your monthly repayments will decrease from today. This type of mortgage 'tracks' the base rate and adjusts your payments accordingly. Although it may not be much, it's something and a step in the right direction.
If you have a fixed-rate mortgage, your monthly payments will remain the same until your term ends, and you switch to your lender's standard variable rate.
If you're remortgaging or currently looking for a mortgage product, there have been positively priced products across the board for a while now. Still, this change in the rate offers stability that the lower products we're seeing will remain.
We always recommend one thing when news like this is announced: If you haven't already checked in with your lender, now is the time.
Could you be saving more? Is there a better product out there now that suits your needs? Freeing up extra cash can make all the difference in your next investment move.
What does the latest base rate cut mean for the property market?
We can only speak from our experience of being on the ground with buyers over the last month, and it's safe to say things have significantly picked up.
Think about it: our UK buyers have been holding off since the pandemic. Whether opting for renting or staying home with the family, after four years, we're now welcoming a set of buyers who aren't just looking to move; they need to move.
Our home hunters made a solid reappearance at the beginning of this year, and since the base rate has held steady, we've seen an increasing number of buyers come through our doors.
With the recent news, rest assured, positivity and confidence are sweeping across our potential homeowners - so if you're considering selling your home and want to benefit from the long-awaited market buzz, now is the time.
If you'd like any further advice on the trends we're seeing in the West Hampstead market, feel free to give our team a call today.
