The Independent – Major Bank Predicts Four Interest Rate Cuts
The Bank of England is widely expected to cut interest rates by 25 basis points at its next meeting on 8 May, bringing the base rate down to 4.25%. Analysts at Barclays believe this could be the start of a series of cuts, forecasting a drop to 3.5% by September, while Morgan Stanley expects it could go as low as 2.75% by mid-2026.
While the exact pace of cuts will depend on upcoming inflation and employment data, many experts agree that mortgage rates could become more competitive over the next year.
Luther Yeates, Head of Mortgages at Orton Financial, says now is the time for homeowners to be proactive: “Many homeowners don’t realise that by simply switching to a more competitive rate, they could save money. While sticking with your current lender may seem like the easiest option, this convenience can come at a cost.
“Switching lenders doesn’t have to be costly or time-consuming. In many cases, lenders will cover the legal and valuation costs. So, if your mortgage is up for renewal, don’t just accept the offer — shopping around could save you thousands.”
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