What’s Happened?
On 1st August 2024, The Bank of England’s Monetary Policy Committee decided in a very close 5-4 vote to reduce interest rates from 5.25% to 5%, causing interest rates to fall from a 16 year high. The decision comes after inflation returned to 2%.
What does this mean?
This much anticipated announcement is good news for potential buyers and existing home owners as the interest rates have fallen for the first time in four years and we are now beginning to see other Lender’s following suit. Experts expect that the Bank may make one or two further reductions by the end of the year.
How does this affect me?
The recent cut is creating favourable conditions for the likes of first time buyers, making it more affordable and easier to get on the property market. For current home owners, especially those coming to the end of their fixed term market, this may be a strategic time to secure a loan at the lower rate before prices continue to increase further.
What can McCay Legal to do help?
Here, at McCay Legal, our Conveyancing Department have vast experience in dealing with purchase and sale files, purchases for first time buyers, buy-to-let purchases and remortgages. If you are considering buying a property or remortgaging an existing property, please feel free to get in touch with us on, Tel; 02871 371705
Written By Our Associate, Aoife Hegarty