Townends Estate Agents Reacts to Bank of England Decision to Cut Base Rate to 0.25%

August 5, 2016
bank of england interest rate

Yesterday, the Bank of England made its first interest rate cut for more than seven years, slashing its base rate from its already historic low of 0.5%, which it has held since March 2009, to 0.25%. It is a move aimed at stimulating the economy after Britain voted to leave the EU in the referendum on June 23.

 As a result, homeowners are now being offered the cheapest ever mortgage deals. Rates on popular two, five and ten-year fixed rate deals have all fallen to record lows, in a boost to millions of borrowers. 

According to analysis from financial research firm Moneyfacts, the average rate on a two-year fixed rate mortgage has fallen to 2.48 per cent – the cheapest on record. This is down from 4.27 per cent five years ago and 2.68 per cent a year ago.  The fall in mortgage rates has dramatically cut the monthly mortgage bills for millions of households. 

 Those on ‘tracker’ mortgages – where the interest rate automatically goes up and down with the Bank rate – will also benefit from today’s rate cut.  Someone with a 25-year £250,000 repayment tracker mortgage paying two per cent interest will now see their monthly £1,100 repayment fall by around £30.

 “We have seen many first-time buyers already benefiting from low mortgage rates and being able to enter the market, and a drop in rates will provide an additional boost for those who have been sitting on the fence and holding off making a property purchase decision,” said Séamus Kavanagh, CEO, Townends Estate Agents. “We welcome the Bank of England’s well timed decision and see this as a positive move to support the housing market generally and we envisage seeing a steady improvement in transaction volumes on the back of today’s interest rate announcement.”   

townends.co.uk

Christopher Walkey

Founder of Estate Agent Networking. Internationally invited speaker on how to build online target audiences using Social Media. Writes about UK property prices, housing, politics and affordable homes.

You May Also Enjoy

Rightmove logo
Breaking News

Rightmove’s weekly mortgage tracker 30/05/25

Average rates for 2-year and 5-year fixed-rate mortgages   Term Average rate Weekly change Yearly change 2-year fixed 4.64% +0.03% -0.78% 5-year fixed 4.61% +0.03% -0.45%   Lowest rates for 2-year and 5-year fixed-rate mortgages   Term Lowest rate Weekly change Yearly change 2-year fixed 3.82% +0.02% -0.93% 5-year fixed 3.88% +0.09% -0.55%   Average…
Read More →
Home and Living

Carpet Cleaning Specials in Stanton: Save on Your Next Service

Sure, the carpeting in your Stanton home is inviting and adds warmth and comfort, but it can also store harmful dirt, allergens, and bacteria that can affect your family’s health. This makes regular carpet cleaning not only better for your health, but also your wallet. With Carpet Cleaning Stanton specials, you can save on the professional services…
Read More →
Rightmove logo
Breaking News

Seven in ten branches now using Rightmove’s insights and training platform

New figures from Rightmove, the UK’s largest property platform, show that seven in ten estate and letting agency branches are making use of its insights and training platform, the Rightmove Hub. This is up from 56% of branches back in 2023. The Hub, first launched ten years ago and recently revamped, has expanded in response…
Read More →
Letting Agent Talk

From Fixer-Upper to Profitable Asset: Strategic Renovations for Landlords

Did you buy a fixer-upper? Or maybe you inherited one. Either way, you’re standing in a place with peeling linoleum, a questionable smell, and wallpaper that could file for social security. The big question: Do you patch things up, go full HGTV, or just torch it for the insurance (don’t do that)? First, take a…
Read More →
Breaking News

Household Costs Indices for UK household groups: January to March 2025

Household Costs Indices, 12-month growth rates, expenditure shares and contributions for UK household groups and all-households. These are official statistics in development. Main points Overall UK household costs, as measured by the Household Costs Index (HCI), rose by 2.6% in the year to March 2025; this is a fall from 2.9% in the year to…
Read More →
Surge in country and seaside property values
Breaking News

Why Rural House Prices Are Surging Faster Than Cities

New analysis from Open Property Group reveals that rural England is facing an affordability crunch, as house prices in the countryside outpace urban growth, despite lower average wages and higher living costs in remote areas. These shifting dynamics are challenging the long-standing assumption that rural life offers a more affordable and sustainable alternative to the…
Read More →