The Bank of England has announced the base rate has been reduced by 0.25%, the first cut since March 2020. So what does this mean for buyers and current homeowners? 

Although the reduction is only small, from 5.25% to 5%, it can have an impact on mortgages and the housing market. The good news is this impact is generally positive as with a reduced base rate, the interest rate lenders charge for mortgages may decrease too.  

The personal impact on the reduction for you will widely depend on your type of mortgage. If you have a variable-rate mortgage, which includes tracker mortgages and standard variable-rate mortgages, this could result in lower monthly mortgage payments, but the exact rate will vary on your individual mortgage.

If you have a fixed-rate mortgage your rates will not currently be affected by the reduction and your current rate will remain the same until your fixed period ends. However, if you are looking for a new mortgage, or are remortgaging, then your rate may change to reflect the base rate cut. 

For buyers who have been waiting to buy their first or next home until mortgage rates decrease, now is an ideal time to renew your search for a lower-rate mortgage. 

If you are ready to move and take advantage of the lower mortgage rates, click here to visit our current developments page and take a look at all the properties we have available across Yorkshire and Derbyshire.