Bank Rate at Its Lowest in Over 2 Years – Should You Be Making Your Move?

What has happened to interest rates?

At their latest meeting, the Bank of England decided to cut the official interest rate (also known as Bank Rate) to 4%.

At 4%, this is the lowest rate since the beginning of 2023.

Some experts think the cut was an odd decision. The Bank forecasts inflation will rise to 4% next month, double its target of 2%. Elevated inflation rates usually see rates go up, not down.

Will the interest rate go any lower?

Bank Governor Andrew Bailey gave a few clues. He said, “It remains important that we do not cut Bank Rate too quickly, or by too much.” He suggested there would be a “gradual and careful approach” in future. He added, “Monetary policy is not on a pre-set path”.

Following the latest announcement, experts are split on whether there will be any more Bank Rate cuts this year or not.

Does this make it a good time to move …. and why?

On the face of it, the official rate cut is good news for those looking for a mortgage. Many lenders have already trimmed their lending rates in anticipation. (Note that interest rates charged by lenders are not the same as the Bank Rate.)

But here is something you should consider: As more buyers catch on to the availability of cheaper mortgages, interest in buying could rise, houses could sell more quickly, and prices could start to increase, too.

The latest Halifax House Price Index suggests there is a link between improving affordability and house price gains.*

If that happens, any savings on mortgage repayments could be wiped out by higher prices.

Consider your options

Right now, it could be a window of opportunity if you have been thinking of moving, investing or buying for the first time.

Look at what’s available to buy right now.

Obtain a valuation if you have a property to sell.

Work out a budget. Decide what you can afford.

Look at your mortgage options. Take expert financial advice. (This article is NOT mortgage advice.)

Then make your own decision on whether now is a good time to make your move.

If you’re looking for a property to buy, why not contact us to see what we have on our books? If you have a property to sell, why not contact us for a valuation and marketing advice?

We hope you’ve found these thoughts useful. Please feel free to forward or share them with your friends and colleagues.

* Source: Halifax HPI 7/8/25