The Bank of England has announced its third base rate cut within six months, reducing it to 4.5% as inflation begins to decrease but remains over the target. Despite an average two-year fixed mortgage beginning to lower to 5.89%, borrowing still remains costly compared to rates prior to 2022. This shift aims to make borrowing more accessible but has been met with caution from lenders due to ongoing inflation concerns. Notably, Chancellor Rachel Reeves highlighted that many families still face elevated mortgage expenses resulting from previous rate hikes.
If you're looking for a self-build or renovation mortgage, these changes will lower your borrowing costs, but mortgage rates remain expensive compared to pre-2022 levels.
Chancellor Rachel Reeves acknowledged the rate cut but warned of the lingering effects of past mortgage rate increases: "While today's cut in interest rates will be welcome news, millions of families are still facing higher mortgage rates after the mini-budget."
Collection
[
|
...
]