The Bank of England Cuts Interest Rates to 4.25%
What this could mean for your mortgage — and your next steps.
In a move widely anticipated by markets, the Bank of England has reduced the base interest rate from 4.50% to 4.25% today.
This will be the second rate cut of 2025 following a prolonged period of increases, where rates peaked at a 16-year high. It’s a key signal that the tide may be turning for borrowers, and many lenders may now respond with new, more competitive mortgage deals.
What This Means for You
If you’re on a fixed-rate mortgage:
There’s no immediate change to your monthly payments. But lower base rates often lead to improved fixed-rate offers. If your current deal ends soon, now is the perfect time to start exploring your options before the market moves further.
If you’re on a tracker, variable, or SVR mortgage:
You may see your monthly payments come down soon, depending on your lender and specific product. This could provide welcome breathing space after a period of higher costs.
Let’s Help You Make the Most of It
This rate change presents a real opportunity to review your current mortgage or plan your next steps with confidence. Whether you’re remortgaging, moving home, or buying for the first time, we can help you:
Understand how today’s rate change affects your deal
Explore new fixed or tracker options
Get ahead of potential lender movements
We’ll cut through the noise and offer clear, personalised advice tailored to your goals.
Please note, your home may be repossessed if you do not keep up repayments on your mortgage.
All the information in this article is correct as of the publish date 8th May 2025. The opinions expressed in this publication are those of the authors. The information provided in this article, including text, graphics and images does not, and is not intended to, substitute advice; instead, all information, content and materials available in this article are for general informational purposes only. Information in this article may not constitute the most up-to-date legal or other information.
