News and Blog
Bank of England base rate falls by 0.25%: what does this mean for mortgages?
Friday 22nd November 2024
What’s happened to the base rate?
The Bank of England’s base rate has dropped to 4.75%.
The Bank’s Monetary Policy Committee (MPC) has voted by 8-1 to cut the base rate by 0.25%. It comes after the Bank decided to keep the base rate on hold at 5% at its last meeting in September.
The base rate, sometimes known as the ‘bank rate’ or the ‘interest rate’, influences the rates that lenders charge their borrowers.
Our Director of Research and Insight, Richard Donnell, says: "The reduction in the base rate to 4.75% is welcome news in response to lower wage growth and inflation. That's probably it for 2024, but the latest Office for Budget Responsibility forecasts point to another three-quarter to one percent off base rates over 2025 ending the year at around 3.8%."