August 2025: base rate cut to 4%

The first edition of my monthly mortgage update, with the latest news, practical tips and what local buyers need to know.

Bank of England cuts base rate to 4%

On 7 August 2025, the Bank of England reduced its base interest rate from 4.25% to 4%, bringing borrowing costs to their lowest level since March 2023.

What this means for you:

• If you're looking to get a mortgage, this is the cheapest opportunity since March 2023 to borrow, with rates and monthly payments now at their lowest level in over 2.5 years.
• For those on fixed rate deals, the impact will depend on remortgage timing, however new fixed rate mortgages are now available from under 3.8%, particularly for larger deposits.
• If you're on a tracker or standard variable rate mortgage, this could mean savings of around £30 per month, depending on your lender.

Why you should get a Mortgage in Principle

A Mortgage in Principle (MIP) gives you an accurate idea of how much you can borrow and strengthens your position as a buyer.

• Sellers and agents take you more seriously when you're pre-approved
• It helps avoid disappointment by giving you a clear budget
• Most MIPs involve a soft credit check, so there's no impact on your score

I can help you arrange one quickly.

Should you use a mortgage adviser?

With hundreds of mortgage products on the market, knowing which one's right for you isn't always straightforward. That's where I come in.

• I have access to deals you won't always find online or direct from banks
• You will save time (and stress), as I'll handle the whole application process for you
• You get qualified, clear advice based on your personal circumstances
• Ongoing support, even after your mortgage completes