{"id":11349,"date":"2025-02-06T14:56:54","date_gmt":"2025-02-06T14:56:54","guid":{"rendered":"https:\/\/www.craneandco.co.uk\/pages\/?p=11349"},"modified":"2025-02-06T14:57:12","modified_gmt":"2025-02-06T14:57:12","slug":"interest-rate-cut-to-4-5-what-it-means-for-the-hailsham-and-eastbourne-property-market","status":"publish","type":"post","link":"https:\/\/www.craneandco.co.uk\/pages\/interest-rate-cut-to-4-5-what-it-means-for-the-hailsham-and-eastbourne-property-market\/","title":{"rendered":"Interest Rate Cut to 4.5% \u2013 What It Means for the Hailsham and Eastbourne Property Market"},"content":{"rendered":"

The Bank of England has decided to cut the interest rate from 4.75% to 4.5%. <\/span><\/h3>\n

What might this mean for homeowners, buyers, landlords and sellers in our area?<\/p>\n

Firstly, why does the Bank of England’s interest rate matter?<\/p>\n

Mortgage lenders decide the interest rates they charge on mortgages using the Bank of England\u2019s official interest rate (also known as the bank rate).<\/p>\n

Broadly, when the Bank of England reduces interest rates, mortgage costs decrease, and vice versa.<\/p>\n

Will this latest cut make mortgages cheaper?<\/strong><\/span><\/h3>\n

If you\u2019re looking for a new mortgage to buy a home now or perhaps a buy-to-let, you will probably find that interest rates on new offers trend downwards.<\/p>\n

If you\u2019re on a variable-rate mortgage, your lender might decide to reduce the interest rate, which would reduce your repayments.<\/p>\n

If you\u2019re on a fixed-rate mortgage, your repayments won\u2019t reduce now. But when the fixed-rate period ends, you might be able to remortgage to a cheaper rate.<\/p>\n

(But remember: The Bank of England has only cut the interest rate by 0.25%. Lenders have been anticipating this cut and have adjusted their rates accordingly. So any reduction might only be small.)<\/p>\n

What the interest rate cut might mean for the property market<\/strong><\/span><\/h3>\n

Broadly it should be a positive thing.<\/p>\n

Lower mortgage rates make buying a home and moving more affordable, which could encourage more people to move or buy for the first time.<\/p>\n

Lower mortgage rates could encourage more landlords to invest in property.<\/p>\n

If you\u2019re looking to sell your home in 2025, it might be easier to do so.<\/p>\n

(Remember that interest rates are only part of the story. Lots of other factors influence the property market too.)<\/p>\n

Will the interest rate be cut again in 2025?<\/strong><\/span><\/h3>\n

At the Bank\u2019s latest meeting, the Monetary Policy Committee voted by a majority of 7\u20132 to reduce the bank rate by 0.25 percentage points to 4.5%. Two members wanted to reduce it by 0.5 percentage points to 4.25%.<\/p>\n

Most experts predict the interest rate will be cut further in 2025.<\/p>\n

Some forecasts suggest the Bank of England rate will be cut to 4% this year.*<\/p>\n

Other forecasts suggest greater cuts. Morgan Stanley forecasts interest rates will fall to 3.5% by the end of this year. Goldman Sachs suggests they will fall to 3.25% in mid-2026.*<\/p>\n

In announcing their decision, the Bank pointed out that inflation at 2.5% was still above their 2% target. They stressed that the speed of further rate cuts will depend on the inflation rate and on the progress of the economy.<\/p>\n

If there are more cuts this year, it could further boost activity in the property market in our area and nationwide.<\/p>\n

If the interest rate reduction has made you think about selling or buying a new home or investing in property, contact us for a free valuation and marketing advice.<\/p>\n

We hope that you\u2019ve found this article interesting. If you know someone who might find it useful, please share it with them.<\/strong><\/span><\/h3>\n","protected":false},"excerpt":{"rendered":"

The Bank of England has decided to cut the interest rate from 4.75% to 4.5%. What might this mean for homeowners, buyers, landlords and sellers in our area? Firstly, why does the Bank of England’s interest rate matter? Mortgage lenders decide the interest rates they charge on mortgages using the Bank of England\u2019s official interest […]<\/p>\n","protected":false},"author":3,"featured_media":11351,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"content-type":"","_themeisle_gutenberg_block_has_review":false,"footnotes":""},"categories":[12],"tags":[8,25,32],"class_list":["post-11349","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-news","tag-advice","tag-jerry","tag-news"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.craneandco.co.uk\/pages\/wp-json\/wp\/v2\/posts\/11349","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.craneandco.co.uk\/pages\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.craneandco.co.uk\/pages\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.craneandco.co.uk\/pages\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.craneandco.co.uk\/pages\/wp-json\/wp\/v2\/comments?post=11349"}],"version-history":[{"count":1,"href":"https:\/\/www.craneandco.co.uk\/pages\/wp-json\/wp\/v2\/posts\/11349\/revisions"}],"predecessor-version":[{"id":11350,"href":"https:\/\/www.craneandco.co.uk\/pages\/wp-json\/wp\/v2\/posts\/11349\/revisions\/11350"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.craneandco.co.uk\/pages\/wp-json\/wp\/v2\/media\/11351"}],"wp:attachment":[{"href":"https:\/\/www.craneandco.co.uk\/pages\/wp-json\/wp\/v2\/media?parent=11349"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.craneandco.co.uk\/pages\/wp-json\/wp\/v2\/categories?post=11349"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.craneandco.co.uk\/pages\/wp-json\/wp\/v2\/tags?post=11349"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}