Good news for home buyers as interest rates fall to 4.75%
07 November 2024
Lowest rates for the first time since June 2023 mean the door could be open for first time buyers and others looking to move house.
The Bank of England has cut interest rates from 5% to 4.75%, the second time the base rate has been cut this year.
So, what does this mean for anyone planning to buy a new home?
The lower interest rate is great news for prospective homebuyers, particularly for first time buyers. After a few years of challenging mortgage rates, this reduction could be the shift needed to help new buyers get on the property ladder.
Matt Halder of new build mortgage experts Threshold Mortgages, agrees that the announcement is a positive one.
“The latest Bank of England announcement of a rate reduction from 5 to 4.75% is very welcome indeed and has come at a great time following the budget last week.
“This is the second reduction of the year following the first in August, and with a continued reduction to the UK inflation rate there is opportunity of further base rate reductions in early 2025.”
Coupled with the recent news that from April 2025 first time buyers in England and Northern Ireland will have to pay more on Stamp Duty, it could be that making a move as soon as possible is a wise decision.
“I expect to see lower mortgage rates in the coming weeks making this a great time to buy, “ says Matt, “especially for first time buyers with the current Stamp Duty relief cap of £425,000 being reduced to £300,000 from the 1st April 2025.”
Ready to make your move? Find out more about your mortgage options, and how you can prepare for your mortgage as a first time buyer.
