Where interest rates stand

The Bank of England uses its base rate to control inflation.

Recent data shows:

  • Inflation has eased compared to its 2022 peak.
  • Economic growth remains modest.
  • Wage pressures are still being monitored.

Markets are currently pricing in the possibility of additional rate reductions, but future decisions will depend on incoming economic data.

Why mortgage rates move before official decisions

Mortgage rates are influenced not only by the base rate but also by:

  • Financial market expectations (swap rates)
  • Competition between lenders
  • Funding costs
  • Risk appetite

As a result, fixed mortgage rates often move before the Bank makes a formal announcement.

Some lenders have already reduced selected fixed deals in anticipation of further easing.

What this means for homeowners

If you are:

  • Nearing the end of a fixed-rate deal
  • Considering a remortgage
  • Buying your first home

You may find:

  • More competitive pricing than earlier in 2024
  • Greater product choice
  • Lower average fixed rates compared to peak levels

However, rates remain above the ultra-low levels seen before 2022.

What about first-time buyers?

Affordability remains a key challenge.

Even if rates fall:

  • Property prices
  • Deposit requirements
  • Lender stress-testing rules

…all influence how much you can borrow.

Recent lender competition has helped reduce rates for some buyers with smaller deposits, but eligibility varies.

The bigger picture

Economic uncertainty — including global events and domestic fiscal policy — continues to influence market sentiment.

A single rate cut does not automatically lead to dramatically cheaper mortgages, and inflation remains above the Bank’s long-term target.

This article provides general information, not personal advice. Mortgage suitability depends on individual circumstances.

Exploring your options

If you would like to understand what mortgage rates lenders might currently offer based on your situation, you can request a mortgage quote to explore options.

(This provides information only and does not constitute financial advice or a recommendation.)