The Bank of England’s monetary policy committee has today reduced interest rates to 4.5%. The cut of 0.25% is the third such reduction in a year and means rates are now at their lowest point since June 2023.

The decision could lead to cheaper borrowing costs for things such as mortgages and loans but could also result in lower returns on savings.

For those households which have tracker mortgages there will be an immediate impact with a reduction in monthly payments.

For those with variable rate deals, lenders will now be expected to cut their rates in line with the Bank. 

Anyone looking to re-mortgage this year should see more favourable deals coming through.

Sheldon Bosley Knight associate director and regional sales manager, Lara Hawkins said it was good news for home buyers and those looking to re-mortgage this year.

She said: “This is great news and hopefully the impact will be that lenders introduce some competitive fixed rate and discounted mortgages.

“Positivity in the mortgage market brings confidence in the housing market – and confidence means those buyers and sellers who want to move, start looking at their options.

“As ever, if you are looking to sell please contact us for a free, no-obligation market appraisal.”