Bank of England Cuts Base Rate to 4.25%
As of 8 May 2025, the Bank of England has reduced its base interest rate by 0.25 percentage points to 4.25%. This marks the fourth rate cut since August 2024, aiming to support the UK economy amid global trade uncertainties.
𝐖𝐡𝐚𝐭 𝐭𝐡𝐢𝐬 𝐦𝐞𝐚𝐧𝐬 𝐟𝐨𝐫 𝐘𝐎𝐔?
Mortgage Holders: Those on tracker mortgages may see immediate reductions in monthly payments. Fixed-rate mortgage holders could benefit upon renewal, with some lenders already offering rates below 4% .
Savers: Savings account rates may decrease, potentially affecting returns. It’s advisable to review your savings strategy to ensure optimal outcomes.
Borrowers: Lower interest rates can lead to reduced costs for personal loans and credit cards, making borrowing more affordable.
For personalised advice on how this rate change impacts your financial situation, feel free to contact one of our offices and we can put you in touch with our in house mortgage broker.