Today's 0.25 percentage point reduction in the Bank of England base rate to 4.5% has elicited positive responses from estate agents and industry experts, who anticipate a boost in the housing market. This marks the third reduction in six months, signaling a trend towards more favourable borrowing conditions.
Following the rate cut, several major lenders, including Lloyds, Barclays, HSBC, Coventry Building Society, and TSB, have proactively reduced their mortgage rates in response to the anticipated base rate cut. These reductions are expected to enhance affordability for borrowers and stimulate increased activity in the housing market - our mortgage experts working with Barbers at MAB (Mortgage Advice Bureau) can give our customers more advice and information about this.
We had already observed a significant increase in buyer interest following previous rate cuts. For instance, after a rate reduction in August 2024, there was a 19% increase in the number of people contacting estate agents about homes for sale compared to the same period the previous year. This trend is expected to continue with the latest rate cut, as more buyers are encouraged to enter the market.
Overall, the reduction in interest rates is viewed as a positive development for the housing market, with expectations of increased buyer activity and improved affordability, so please call into your local Barbers office to see how we can help with your property search and also provide you with independent and trusted mortgage advice.
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