06 February 2025 ·
The Bank of England has just announced that it will reduce the Base Rate to 4.5% this month, the lowest since June 2023. Find out what it can mean for you.
Bank of England reduce Base Rate to 4.5%
The Bank of England announced on Thursday 6th February, that it will reduce the Base Rate from 4.75% to 4.5%. The Base Rate was previously held at 4.75% in December after two cuts in 2024.
What does this mean for mortgage rates?
Any change to the Base Rate can impact the interest payable on loans, which includes mortgages.
- If you’re on a fixed-rate mortgage, your monthly payments won’t change until the end of your term.
- If you’re on a tracker mortgage or a variable rate mortgage, your monthly payments will drop in line with the change to the Base Rase.
Will the Base Rate be reduced further?
The new Base Rate announced today is the lowest level since June 2023.
While we are now seeing the beginning of a downward curve, it is highly unlikely that Base Rates will drop back to the historic lows we saw back in 2021.
Are you thinking of waiting a little longer to see if they drop further? Torc24, our recommended mortgage advisor has said:
"We always advise our customers that we can lock in the best rate now, giving you peace of mind when you reserve your property. Think of this as a worst case scenario. Around a month prior to completion, we will re-assess the mortgage products available on the market and get you a better rate if possible ahead of completion."
What does the Base Rate reduction mean for affordability?
Your affordability is determined by a ‘stress test’ - calculations made on whether or not you could afford a mortgage if your repayments were to jump considerably. This is linked to the Standard Variable Rate (Base Rate).
The ‘stressed rate’ is usually the lender’s SVR, with at least 1% added on top. So, if lenders reduce their SVR in line with the Base Rate cut, we may start to see improvements in affordability, because the stressed amount will now be lower than if the Base Rate wasn’t reduced.
When is the next Base Rate review?
The Base Rate is reviewed every 6 weeks by the Bank of England, deciding whether or not interest rates should increase, decrease or remain the same.
The next announcement will be on 20th March 2025.
For a more detailed update on the recent Base Rate cut, please read this article published by Rightmove.
Dock28
London, London
-
No of bedrooms
1-3
-
Price
From £450,000
-
Est. completion date
October - August 2025
Dock28 is an exciting development comprising 216 studio, one, two and three bedroom apartments and three bedroom duplexes, located in the Royal Borough of Greenwich. These stylish new homes occupy a prime location just a 4 minute walk to the River Thames in the historic naval and military town of Woolwich, named one of the "Best Places To Live" in 2023 by The Sunday Times, with fantastic transport connections on your doorstep.
The Green at Epping Gate
Loughton
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No of bedrooms
1-3
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Price
From £363,000
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Est. completion date
Available now
A collection of spacious and stylish studio, 1 & 2 bedroom apartments and 2 & 3 bedroom duplexes, designed with modern life in mind. Perfectly located close to beautiful Epping Forest, yet within easy reach of the bustle of town, The Green offers you a truly superb place to call home. Here, you are within the desirable ‘Golden Triangle’ of Loughton, Buckhurst Hill and Chigwell, where high street stores, luxury boutiques and chic restaurants make everyday life a real pleasure. You are also close to excellent transport links and local amenities.
Park Quarter
Barnet, London
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No of bedrooms
1-3
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Price
From £365,000
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Est. completion date
September - March 2025
Park Quarter is a collection of 1, 2 and 3 bedroom apartments and 2 bedroom duplexes in Barnet, one of London's most desirable areas. Just a 4 minute walk from New Barnet station for National Rail services into Moorgate in less than 30 minutes, with a host of amenities, restaurants and open spaces right on your doorstep.
The Silverton
London
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No of bedrooms
1-4
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Price
From £350,000
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Est. completion date
September - February 2025
One Goodmayes
Ilford
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No of bedrooms
1-2
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Price
From £250,000
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Est. completion date
November - March 2025
Welcome to One Goodmayes, a new development of studio, one & two-bedroom apartments enviably located on the High Road, just a 7 minute walk to both Goodmayes and Seven Kings stations, with direct access to the Elizabeth line. This prime location offers unbeatable travel times including a quick 13-minute commute to Stratford, a 21-minute journey to Liverpool Street and under 1 hour to Heathrow Airport. Discover a vibrant community and enjoy the convenience of living in Zone 4, with a range of local amenities within easy reach.
Printmakers Yard
Brentford, London
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No of bedrooms
1-4
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Price
From £365,000
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Est. completion date
January - March 2027
Welcome to Printmakers Yard, where your future is in the making. Nestled in the vibrant community of Brentford Waterside, this development of studio, 1, 2 and 3 bedroom apartments and 4 bedroom triplexes offers a unique opportunity to embrace a dynamic lifestyle in one of West London's most eclectic neighborhoods.
With its proximity to the river, some apartments at Printmakers Yard boast stunning views of the tranquil waters, providing residents with a serene backdrop to their daily lives. Imagine waking up to the gentle flow of the river and ending your day with breathtaking sunsets over the water – all from the comfort of your own home.