Bank of England Cuts Interest Rates to 4.25%: What It Means for Cambridge Homebuyers

On May 8, 2025, the Bank of England lowered the base interest rate by 0.25% to 4.25% — its fourth cut since August 2024. This move is designed to boost the economy and make borrowing more affordable, offering a valuable opportunity for homebuyers and homeowners looking to remortgage.

What this means for you:

Tracker mortgages: Around 590,000 homeowners will see lower monthly payments, saving roughly £29 on average.

Standard Variable Rate (SVR) mortgages: Borrowers may benefit if lenders pass on the rate cut.

Fixed-rate mortgages: While current rates stay the same, those nearing the end of a fixed term can lock in better deals.

Why now is the time for mortgage advice:

With the possibility of further cuts — potentially down to 3.5% later this year — speaking to a mortgage advisor can help you:

• Review your current mortgage and potential savings

• Explore remortgage or fixed-rate options

• Plan ahead for future rate changes

The Cambridge property market remains strong, driven by the city’s universities, tech sector, and excellent quality of life. Lower rates mean it’s a great time for first-time buyers, movers, and investors.

Take action today

Contact us to discuss your options and get expert mortgage advice. We’re here to help you navigate the market and make the most of this opportunity.