On Thursday, 7 August 2025, the Bank of England lowered the Bank Rate by 0.25 percentage points to 4%, its lowest level since March 2023 and the fifth reduction in a year. The move affects mortgages, investments and the wider property market.
What this means for you
Reduced repayments for homeowners
Tracker mortgage holders should see monthly payments fall by approximately £29 per £100,000 borrowed.
Falling mortgage rates across the board
Lenders are responding, with new two- and five-year fixed-rate mortgage deals trending below 5%, and some offers below 3.8% available to well-qualified buyers.
A boost to affordability
Improved borrowing conditions can encourage renewed activity in the property market, which is of particular interest to investors focused on long-term capital growth.
Source: The Guardian, 7 August 2025 (Rupert Jones).
What to consider
Lower borrowing costs can improve the numbers on a buy-to-let purchase, but every investment is different. Speak to our team and a qualified mortgage broker about how current rates affect your plans.