Today the Bank of England announced a 0.25% cut to the base rate, bringing it down to 3.75% – a move that will be welcome news for many as we head into the final weeks before Christmas.
While it’s not quite enough to replace the turkey or pay for the presents, lower interest rates can make a real difference behind the scenes.
For anyone on a tracker or variable rate mortgage, this cut should feed through to slightly lower monthly payments. And for those thinking about a move or a remortgage in the New Year, mortgage rates have already been edging down in anticipation of today’s announcement.
As ever, fixed-rate mortgage holders won’t see an immediate change, but this shift adds to the growing sense that borrowing costs are now moving in the right direction after a challenging couple of years.
The Bank of England has been clear that future rate cuts will be gradual and cautious, but today’s decision feels like a positive note to end the year on, and a reminder that reviewing your mortgage regularly can really pay off.
If your fixed rate is due to end in the next 6–12 months, or you’re simply wondering whether there’s a better deal available, we’re always happy to have a chat.