Movera comment on the BoE base rate cut to 4.75%

07 November 2024

Please see below a comment from Warren Martin, Director of Operations at ONP Solicitors, part of Movera on the Bank of England MPC decision to cute the base rate.

“Today’s rate cut from the Bank of England is a welcome step for the housing market and couldn’t be better timed. At ONP, we’ve seen transaction volumes taper off over the last two weeks, with many prospective buyers and remortgagers sitting tight in anticipation of this announcement. Now, with this decision, we hope to see lenders release some appealing, competitive mortgage products in the run-up to Christmas, which would help stimulate the market at year-end.

“This rate reduction is particularly encouraging for first-time buyers and those facing remortgage deadlines in 2025—an estimated 1.8 million homeowners who might otherwise be bracing for steeper repayments. Although some payment increases are likely inevitable, today’s decision should go some way to soften that blow.

"Additionally, with the government’s recent measures to increase affordable housing, boost small housebuilder guarantees, and restrain speculative investments, this rate cut should enhance affordability across the board. All eyes will be on the upcoming CPS inflation figures on the 20th to see how these moves will translate to everyday costs, but today's announcement certainly signals a positive shift for both affordability and accessibility in the housing market.”