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Bank of England Rate Cut to 3.75% Triggers Mortgage Repricing and Modest Relief

Lenders are cutting some mortgage rates, with a narrow MPC vote keeping the path for further reductions uncertain.

Overview

  • Some lenders have begun lowering fixed and variable mortgage deals, with Nationwide cited as competing more aggressively for new business.
  • Roughly 500,000 tracker borrowers are estimated to save around £30 per month, offering immediate but limited relief.
  • Industry figures say the reduction could unlock pent‑up demand and improve affordability for first‑time buyers after a prolonged slowdown.
  • A We Buy Any Home survey reports 53% of respondents see interest rates as the main barrier to moving home, highlighting sensitivity to borrowing costs.
  • The cut passed by a 5–4 MPC vote, and analysts say markets currently expect only one additional reduction in 2026.