Further Rate Cuts Anticipated
The Bank of England reduced the base rate from 4.5% to 4.25% on 8 May 2025. This 0.25% cut directly benefits approximately 600,000 tracker mortgage holders, who can expect average monthly savings of around £29. Those on standard variable rate (SVR) mortgages may also see reductions, though the extent depends on individual lenders’ decisions
While fixed-rate mortgage holders won’t experience immediate changes, the rate cut has intensified competition among lenders, leading to reductions in fixed-rate deals. Notably, lenders such as Nationwide, Halifax, TSB, and Virgin Money have lowered rates, with some two-year fixed deals now below 4%
Looking ahead, further base rate cuts are anticipated, potentially bringing the rate down to 3.5% by year-end, depending on economic conditions . Borrowers nearing the end of their fixed-rate terms should consider reviewing their options to capitalise on the evolving market.
Swap Rates Fall Sharply
Over recent weeks, UK swap rates have fallen sharply due to a combination of factors. Markets are increasingly pricing in further cuts to the Bank of England base rate following last week’s reduction, as easing inflation and weaker economic data point to a more cautious monetary policy stance. Global uncertainties, including trade tensions and slowing growth forecasts, have also driven investors toward safer assets like government bonds, lowering yields and swap rates. Additionally, intense lender competition has seen banks reduce fixed-rate mortgage pricing, further contributing to the downward movement in swap rates, which directly impact fixed mortgage costs.
8th May Swaps
20th March Swaps
Late Appointments Now Available
With flexible appointments available until 7pm, we make it easier than ever to fit mortgage advice into your busy schedule. With todays reduction in the base rate and 2025 predicted to be on of the busiest years yet, securing your spot early is essential.
Don’t wait to take control of your finances and start the year with confidence and peace of mind. Contact us today to explore your options and ensure you’re set up for success. Lets make your property goals a reality.
