Bank of England reduces interest rates to 4.75%

We are very encouraged by the news that the Bank of England has reduced interest rates for the second time this year, taking the base rate from 5% to 4.75%.

This is positive news for homebuyers, as this reduction in the base rate can impact how much interest homeowners will pay on their mortgages.

For those on a fixed-rate mortgage, their monthly payments won’t change until the deal comes to an end, but once it has homeowners will automatically be moved to their mortgage lender’s standard variable rate (SVR), which is impacted by the Bank of England’s rate.

Tracker mortgages ‘track’ the base rate, so homeowners on this loan will see their rates and monthly payments decrease in line with the Bank of England’s cut.

Kelly Toms, Sales and Marketing Director at Allison Homes East, said: “The Bank of England reducing the base rate by 0.25% is very promising news. This drop in the base rate may help homebuyers access a more affordable mortgage and come to own a home that was previously out of reach.

“We would encourage anyone who is looking to move to a brand-new home to speak with an independent financial advisor and find out what mortgage works for them. At Allison Homes, we work closely with Evolve Financial Solutions to make sure expert advice is always readily available to our homebuyers.”

For free mortgage advice, call Evolve on 01473 603 211.

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