If you’ve been waiting for the right moment to buy a home or move up the property ladder, this could be your golden opportunity. The Bank of England made a 3rd cut in interest rates in the last 8 months - potentially making mortgages cheaper and opening doors for first-time buyers and homeowners looking to move. But how long will this window of opportunity last? And should you act now?
Why this interest rate cut is a big deal
On February 6, 2025, the Bank of England lowered the base interest rate from 4.75% to 4.5% in response to a slowing economy. This is huge news for anyone considering buying a home or remortgaging, as interest rates directly impact monthly mortgage payments.
Lower mortgage rates may follow
Banks and lenders typically adjust their mortgage rates after a base rate cut. While not immediate, we could see more affordable mortgage deals hit the market in the coming weeks.
First-time buyers might find it easier to get on the property ladder
With borrowing potentially becoming cheaper, securing a mortgage might become more achievable.
If you’re moving house, you could lock in a lower rate
If you’ve been hesitant to sell and buy due to high mortgage rates, this shift could work in your favour.
Remortgaging? Now’s the time to act.
If your fixed-rate mortgage is ending in the next 6 months, securing a new deal sooner rather than later could save you thousands in interest payments.
Will mortgage rates drop immediately?
Not necessarily. While some lenders have already lowered their rates, others are taking a wait-and-see approach. Mortgage rates won’t drop overnight, and not every deal will suddenly become cheaper.
The key takeaway? If you're in the market for a mortgage, start shopping around NOW.
At Skyline Mortgage Consultants, we help you compare the latest mortgage deals from the whole market so you don’t miss out when the best rates hit.
Tracker vs. Fixed-Rate mortgages – what’s best right now?
With the base rate falling, tracker mortgages (which move directly in line with interest rates) could offer instant savings. Your monthly payments should drop automatically if you’re on a tracker mortgage.
On the other hand, fixed-rate mortgages offer stability, locking in a rate for 2, 5, or even 10 years. If rates fall further, fixed deals might become even more competitive in the coming months.
Our advice? If you’re unsure whether to go fixed or tracker, book a chat with Tony, our award-winning mortgage expert, to discuss your options.
Is this the start of more rate cuts?
The big question on everyone’s mind: Will the Bank of England cut rates even further?
While some analysts predict another cut later in 2025, the Bank has warned that inflation could rise briefly before dropping back down. That means there’s no guarantee that rates will continue to fall - and waiting too long could mean missing the best deals.
Bottom Line: If you're considering buying, moving, or remortgaging, the best time to explore your options is NOW.
What should you do next?
The market is changing fast, and being proactive is the key to getting the best mortgage deal.
Check your mortgage options – Use our online mortgage sourcing tool to compare rates 24/7.
Book an appointment with Tony – you can schedule an online chat with our expert mortgage broker to discuss your best options.
Act fast before rates move again – The best deals won’t last forever, and lenders are already adjusting rates in response to the cut.
Ready to find the right mortgage for you?
Contact Skyline Mortgage Consultants today. You can book an online mortgage appointment with Tony easily by selecting a convenient time from our booking calendar.
Your home (or property) may be repossessed if you do not keep up repayments on your mortgage or any other debts secured on it. A fee may be charged for mortgage advice. The amount will depend on your circumstances.
Skyline Mortgage Consultants Limited is an Appointed Representative of The Right Mortgage Ltd, authorised and regulated by the Financial Conduct Authority. Skyline Mortgage Consultants LTD is registered in England and Wales Number 8157062. Company Registered Office: Heathmans House, 19 Heathmans Road, London SW6 4TJ.