Interest Rates Cut by 25 Basis Points to 5%
The Bank of England has finally made its much-anticipated move and cut rates by 25 basis points to 5 per cent.
In a narrow decision, the Committee voted 5-4 in favour of the cut, with those advocating for lower rates prevailing, arguing that the timing was right for such a move.
David Wise, Founder and Head of business of Fitch & Fitch, stated, “Following much anticipation, the Bank of England has finally responded to the appeals of both current and potential borrowers by implementing this much-needed rate reduction.”
Even though the market had anticipated this decision, sentiment is crucial, and this will act as a significant boost for the housing and mortgage sectors. This reduction sends a crucial signal that affordability pressures are expected to ease gradually, improving the market’s dynamics and enhancing buyers’ purchasing power.
For those planning to secure a mortgage this year, it’s advisable to prepare as much as possible to account for higher rates. At Fitch & Fitch, we recommend booking mortgage products as early as six months in advance. This proactive approach not only secures your preferred rates but also provides flexibility to opt for lower rates should they decrease by the time you finalise your mortgage.
For tailored advice and the latest updates on mortgage rates, connect with our highly experienced team today. Your partner, every step of the way.