Bank of England Votes To Cut Base Rate

The Bank of England has today voted to reduce the base rate to 4.25%, the second reduction this year following a hold in March. A decrease had largely been expected, with mortgage lenders pre-emptively reducing rates in recent weeks.

A 'priced in' base rate reduction means the move is unlikely to result in dramatic rate changes, with lenders seemingly opting for regular, gradual reductions as the year progresses.

A number of lenders have announced rate changes this week, ahead of the Bank of England reduction. Nationwide Fixed rates have been cut by up to 0.30% for the majority of their purchase range across 2, 3 and 5 year products, with TSB 2 year Fixed rates reduced by up to 0.15% for home movers and first-time-buyers.

Halifax have cut first-time-buyer and homemover Fixed rates by up to 0.10% from today, with remortgage and product transfer/further advance rates reducing by up to 0.18%. Coventry Building Society have also announced reductions, with all Fixed rates cut at 65-90% loan-to-values. These changes will be effective from Friday.

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