The Bank of England has reduced its base interest rate from 5% to 4.75%, marking the second reduction this year after an initial cut in August. This move signals a shift in the Bank’s policy as it aims to support the economy.
Governor Andrew Bailey has indicated that “it is likely that interest rates will continue to fall gradually from here.”
What does this mean for clients? Those on tracker or variable-rate mortgages will see changes first, with lenders sending letters to confirm the reduction. However, fixed-rate mortgage holders won’t see immediate adjustments, as lenders haven’t yet announced changes to fixed rates; these may follow in the coming weeks.
Here at Ashwell Mortgage Services, we are closely monitoring these gradual rate changes and will keep our clients informed of any updates. Experts suggest further reductions may be on the horizon, albeit at a more measured pace.
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