UK Interest Rate

The Bank of England has halved the growth forecast for 2025 to 0.75% from 1.5% and also dropped the interest rates for homeowners on mortgage.

Source: Bank of England via BBC

Mortgage IMPACT

The interest rate cut means that for the 629,000 homeowners on mortgage tracker deals that move in line with the base rate, there will typically be a £29 fall in monthly repayments.

The near 700,000 people on standard variable rate mortgages will have to wait to see if their lender responds.

Those on a fixed mortgage deal will see no immediate change, but there might be cheaper deals available for new and renewing customers.

https://www.bbc.com/news/articles/c0lzj3g77gpo

UK interest rate cut to 4.5% - Source: Bank of England, Last update: 6 Feb 2025 via BBC