07 August 2025 ·
The Bank of England has just announced that it will reduce the Base Rate to 4%, the lowest since March 2023. Find out what it can mean for you.
Bank of England reduce Base Rate to 4%
The Bank of England announced on Thursday 7th August, that it will reduce the Base Rate from 4.25% to 4%.
What does this mean for mortgage rates?
Any change to the Base Rate can impact the interest payable on loans, which includes mortgages.
- If you’re on a fixed-rate mortgage, your monthly payments won’t change until the end of your term.
- If you’re on a tracker mortgage or a variable rate mortgage, your monthly payments will drop in line with the change to the Base Rase.
Will the Base Rate be reduced further?
This is the fifth reduction in a year and takes rates back to where they were in March 2023.
While we are now seeing the continuation of a downward curve, it is highly unlikely that Base Rates will drop back to the historic lows we saw back in 2021.
Are you thinking of waiting a little longer to see if they drop further? Torc24, our recommended mortgage advisor has said:
"We always advise our customers that we can lock in the best rate now, giving you peace of mind when you reserve your property. Think of this as a worst case scenario. Around a month prior to completion, we will re-assess the mortgage products available on the market and get you a better rate if possible ahead of completion."
What does the Base Rate reduction mean for affordability?
Your affordability is determined by a ‘stress test’ - calculations made on whether or not you could afford a mortgage if your repayments were to jump considerably. This is linked to the Standard Variable Rate (Base Rate).
The ‘stressed rate’ is usually the lender’s SVR, with at least 1% added on top. So, if lenders reduce their SVR in line with the Base Rate cut, we may start to see improvements in affordability, because the stressed amount will now be lower than if the Base Rate wasn’t reduced.
When is the next Base Rate review?
The Base Rate is reviewed every 6 weeks by the Bank of England, deciding whether or not interest rates should increase, decrease or remain the same.
The next announcement will be on 18th September 2025.
For more information on the Base Rate cut and what this could mean for you, read this article from Rightmove.
Park Quarter
Barnet, London
-
No of bedrooms
1-3
-
Price
From £370,000
-
Est. completion date
September - June 2026
Park Quarter is a collection of studio, 1, 2 and 3 bedroom apartments and 3 bedroom duplexes in Barnet, one of London's most desirable areas. Just a 4 minute walk from New Barnet station for National Rail services into Moorgate in less than 30 minutes, with a host of amenities, restaurants and open spaces right on your doorstep. Phase 2 launching Saturday 13th September.
One Goodmayes
Ilford
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No of bedrooms
1-2
-
Price
From £330,000
-
Est. completion date
Available now
Welcome to One Goodmayes, a development of studio, one & two-bedroom apartments enviably located on the High Road, just a 7 minute walk to both Goodmayes and Seven Kings stations, with direct access to the Elizabeth line. This prime location offers unbeatable travel times including a quick 13-minute commute to Stratford, a 21-minute journey to Liverpool Street and under 1 hour to Heathrow Airport. Discover a vibrant community and enjoy the convenience of living in Zone 4, with a range of local amenities within easy reach.
Printmakers Yard
Brentford, London
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No of bedrooms
1-4
-
Price
From £350,000
-
Est. completion date
January - June 2027
Welcome to Printmakers Yard, where your future is in the making. Nestled in the vibrant community of Brentford Waterside, this development of studio, 1, 2 and 3 bedroom apartments and 4 bedroom triplexes offers a unique opportunity to embrace a dynamic lifestyle in one of West London's most eclectic neighbourhoods.
With its proximity to the river, some apartments at Printmakers Yard boast stunning views of the tranquil waters, providing residents with a serene backdrop to their daily lives. Imagine waking up to the gentle flow of the river and ending your day with breathtaking sunsets over the water – all from the comfort of your own home.
Wattons
Hertfordshire
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No of bedrooms
2-4
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Price
From £480,000
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Est. completion date
August - March 2026
Launching Saturday 6th September 2025
An exclusive collection of just thirty-six 2, 3 and 4 bedroom houses in Watton-at-Stone, Hertfordshire.
Living in Watton-at-Stone offers a charming blend of rural tranquillity and convenient access to urban amenities. Nestled in the Hertfordshire countryside, this picturesque village boasts beautiful landscapes, historical architecture, and a tight-knit community, fostering a warm and welcoming atmosphere.