The Bank of England Cuts Interest Rates to 4.00%

What this could mean for your mortgage.

In a move widely anticipated by markets, the Bank of England has reduced the base interest rate from 4.25% to 4.00% today.

This marks a further step in the Bank of England’s shift away from the cycle of rate hikes that saw interest rates reach a 16-year high. It’s another clear signal that the tide may be turning for borrowers, and many lenders may now respond with new, more competitive mortgage deals.

What This Means for You

If you’re on a fixed-rate mortgage:

There’s no immediate change to your monthly payments. But lower base rates often lead to improved fixed-rate offers. If your current deal ends soon, now is the perfect time to start exploring your options before the market moves further.

If you’re on a tracker, variable, or SVR mortgage:

You may see your monthly payments come down soon, depending on your lender and specific product. This could provide welcome breathing space after a period of higher costs.