Bank of England cuts bank base rate to 4.75%

The Bank of England has cut the bank base rate to 4.75% for the second time this year which means it’s at the lowest level for more than a year. The cut was largely in response to lower wage growth and inflation.

Average mortgage rates on an overall two-year fixed rate have dipped by 0.01% and the five-year fixed rate rose by 0.02% to 5.39% and 5.09% respectively as of the start of November. Rachel Springall, finance expert at Moneyfacts, said: “Borrowers will be disappointed to see product volatility within the mortgage market. These moves make it essential for prospective borrowers to act quickly to secure a new deal. There will be many borrowers coming off a cheap rate in the months ahead, so it’s imperative they seek a new offer and not default onto an expensive revert rate.

There are expectations that the Bank of England will bring down the base rate further next year, but recent events have led to uncertainty on fixed-rate pricing. Swap rates have been on the rise since the Budget and lenders will traditionally increase fixed rates in response.”