Shaun Sturgess Shares Expert Insight in The Telegraph and National World on Bank of England Rate Cut
This week, I had the privilege of sharing my views with two major national publications — The Telegraph and National World — on the Bank of England’s decision to cut the base rate to 4%. This move has sparked widespread discussion about its impact on mortgage holders, aspiring homeowners, and the broader property market.
A Welcome Boost for Borrowers
In my comments to National World, I highlighted the positive sentiment this cut brings to both existing mortgage holders and those looking to buy:
“The Bank of England’s decision to cut the base rate to 4% is a positive step for mortgage holders and buyers. It signals a shift in sentiment — and while we won’t see a flood of cheaper deals overnight, it does ease pressure on lenders and borrowers alike. Tracker mortgage holders will benefit immediately, and fixed rates could edge down further. For aspiring buyers, this may improve affordability and bring confidence back into the market.”
While tracker and variable rate customers will see the benefit right away, the psychological impact on the housing market is equally important. Confidence fuels activity — and this decision could help turn the tide after months of uncertainty.
A Note of Caution
In The Telegraph, I also urged homeowners to temper expectations for fixed-rate reductions:
“Lenders are acting with caution. Any downward movement in mortgage rates is likely to be incremental rather than dramatic. The cost of funds and lender margins continue to play a significant role, meaning we shouldn’t expect a return to ultra-low rates seen in recent years.”
It’s a reminder that while this cut is encouraging, mortgage pricing is still influenced by wider economic factors — particularly swap rates — and lenders are unlikely to slash rates overnight.
Looking Ahead
Overall, this rate cut is a welcome step towards restoring market stability. It should gradually improve affordability and encourage more competitive lending, but borrowers should remain focused on the true cost of any mortgage deal rather than headlines alone.
If you’re unsure how this change affects your own mortgage — whether fixed, tracker, or variable — now is an ideal time to review your options. As always, the right advice at the right time can make all the difference.
