Bank of England Base Rate Reduction

The Bank of England announced this past Thursday (1st August) that they would be reducing the Bank of England Base Mortgage Rate from 5.25% to 5.00% - this is the first base rate reduction since the rate reached a 16 year high. Borrowers who have their mortgage payments linked directly to the Bank of England base rate (commonly known as ‘Tracker’ mortgages) will receive contact from their lender shortly, about when these changes will take effect.

In addition, if a Borrower has a Mortgage which is linked to a Standard Variable Rate, then you should wait to hear from your Lender to find out if they will be passing on the recent reduction to the Bank of England base rate.

Borrowers who have a Fixed Rate Mortgage will not see any automatic change to their payments due to the nature of this type of mortgage, however we have seen many Fixed Rate cost reductions in recent weeks as lenders adapt to different market conditions.

If you have a question about your own Mortgage, please get in contact and we’ll help you further!