What does the cut in interest rate mean for your mortgage?

4th August 2016

Hundreds of thousands of British homeowners have just had their monthly mortgage repayments reduced as The Bank of England announced earlier today that they are cutting interest rates from 0.5% to 0.25%. 

Around 1.5 million mortgages track interest rates set out by The Bank of England and borrowers with tracker mortgages will immediately see an average cost cut of £22 a month.

The mortgage cut will not be experienced by everyone, as the drop only applies to those on tracker and other types of variable-rate mortgages whose rates may move in line with the Bank Rate.

What does this mean for first-time buyers?

Although the cut in rates means mortgages will become cheaper, it doesn’t necessarily mean getting one will be easier for first-time buyers. Andrew Hagge of moneycomms.co.uk, a research firm, told The Telegraph:

 “While mortgages become more affordable and the cut will help those already in their own homes, it does little for those looking to take a first step on the housing ladder as a shortage of properties and [higher] prices are putting home ownership beyond reach for a growing number of people.”

The Bank also announced the biggest cut to its growth forecasts since 1993, reducing its growth prediction for 2017 from the 2.3% it was expecting in May to 0.8%.

The decision to cut interest rates was unanimous and marks the first change in interest rates since March 2009.

Lower interest rates are generally considered positive for borrowers but bad for savers.

The theory of a Bank rate cut is that consumers see a cut in the amount they have to pay back on accumulating debt and a worsening return on savings, which prompts them to go out and spend more money, therefore boosting the economy in times of unease.  

Testimonials

  • First class service from a first class team.

    Mr & Mrs English The Ridgway

  • The sale was dealt with swiftly, professionally and successfully. Thank you Maslen!

    Mrs Lincoln Hove

  • Nick and Paula are total stars! They were incredibly supportive and present throughout. Thank you!

    Miss O'Haire Hove

  • Excellent communication and advice throughout. It felt very reassuring to be in good hands.

    Mrs Brooker Buller Road

  • All agents at Maslen were extremely helpful and polite from the beginning to the completion of sale. 

    Mr Johnson Fiveways

  • A good team at Woodingdean helped us through a stressful time.

    Mr & Mrs Penton Sycamore Close

  • Very good service and communication. Paula was excellent.

    Mr & Mrs Scarboro 1 Pevensey Road

  • Best Agents in Brighton.

    Mrs Field Tarner Road

  • Very impressed with the service. Sharon Wareham works tirelessly, very professionally and is always there for advice. 

    Miss Matthews Kipling Avenue

  • Compared to your rivals, your service was excellent

    Ms McGrigor Milner Road

  • Paul was absolutely brilliant. 

    Mrs Tasker Fiveways

  • Very helpful and patient team.

    Mrs Shea Selborne Place

  • Paula is amazing!

    Ms Aspnall Gladstone Place

  • Ben and Paula were calm and reassuring throughout a very difficult process!

    Ms Easterbrook Bear Road

  • All the staff I dealt with were excellent. Sharon worked really hard to complete the sale.

    Mrs Bent Falmer Gardens

  • Sharon was excellent, she kept us informed at all stages and was a really calming objective influence in the process.

    Ms Frederick Channel View Road

  • First class service. Friendly and professional.

    Mr Thorne The Avenue

  • We cannot recommend Maslen's estate agents enough.

    Many thanks to Paul, Donna, Janette and the...

    Linda & Les Wigmore Close

  • Sharon was amazing! She kept us up to date the whole way through the process. We cannot fault Sharon or the rest of her team. 

    Mr & Mrs Ashley Woodingdean

  • As always, an excellent service. 

    Mr & Mrs Field Lewes Road

  • Sharon was excellent - kept us well informed, thank you so much!

    Ms Waters Cowley Drive

  • The staff were very helpful, an excellent service. I would recommend you to others.

    Miss Hockly Fiveways

  • Very pleased with the experience. I would definitely recommend you and use you again.

    Ms D Edmonds Horton Road

  • A very positive experience - I had most contact with the Fiveways office and they were so friendly and helpful.

    Ms A King Balfour Road

  • We were delighted with the service received from all the staff with whom we had contact,

    Dr Crichton The Ridgway

  • Paula was absolutely amazing!

    Mr & Mrs MacKay Lewes Road

  • Very impressed with the efficient and friendly service, the staff were a pleasure to deal with. 

    Mr & Mrs Gill Lewes Road

  • All very professional, kept updated throughout. Very pleased - Would recommend. 

    Mrs Hammond Hove

  • Very pleased with the service. Many thanks to Sharon and the boys!

    Mr Flynn Woodingdean

  • Very professional service. Thank you!

    Miss New & Mr Jackson Buller Road

  • I would recommend Maslen to anyone. 

    Mrs Tripp Woodingdean

  • Excellent service as always

    Mr Field Ringmer Road

  • Good team. Straightforward. No nonsense.

    Mr Standing Newmarket Road

  • Harvey was helpful and easily reachable at the beginning of the process and Sharon kept us informed and was always happy to help.

    Ms Murch & Ms Mapa Ticehurst Road

  • From start to finish the sale was dealt with in a thoroughly professional manner.  

    Mr Gibbs Lewes Road

  • You were amazingly helpful throughout - a real pillar of strength with a very difficult sale.

    Mrs Parkin Fiveways

  • Many thanks to Nick. It was an easy process thanks to you! I'm extremely satisfied with how the sale went, great job.

    Ms Mayanobe Aymer Road

  • Already recommended you! Thank you.

    Mr Edwards The Ridgway

  • Excellent service from the Lewes Road branch. Martin Timms secured a quick sale & at a good price & Paula Carter worked really hard to secure...

    Ms Schulte Bear Road

  • The team worked very hard over a long period to ensure my sale went through - excellent service!

    Mr Patrick Gladstone Terrace

  • Thank you Maslens, you were all excellent!

    Miss Jasper Taunton Road

  • Fantastic service. By far the best agents we have ever used, I cannot recommend you highly enough.

    Mr Field Mafeking Road

  • Sold within 2 weeks for asking price "excellent!"

    Mr Grundy Bishops Road

  • Paula was fabulous and we felt really informed and supported. 

    Mr & Mrs Walker Lewes Road

  • Paula's role was brilliant. Having someone office based and available was so appreciated and her promptness an impressive service - every Estate Agent...

    Ms Wynn-Jones Baxter Street

  • Service exceeded my expectations overall at all stages of the process - I wouldn't hesitate to recommend you. Thanks. 

    Ms Greene Lewes Road

  • Thanks for an excellent service. 

    Mr King Hove

  • Great service, always polite and friendly. Excellent contact and info all the way.

    Mr Wells Bishops Road

  • Sharon, Harvey and James were all excellent - very professional. Totally opposite to what I have experienced with other agents. Maslen have restore...

    Ms Lyons Woodingdean

  • Very, very happy we chose you, felt right from the start! Thank you!

    Miss Blackadder Coniston Court, Holland Road

  • The whole team were very committed from start to finish.

    Mr Pilgrim Lewes Road

  • We were very pleased with services provided by the Fiveways office.

    Mr & Mrs Sawyer Shaftesbury Road

  • Excellent Service from start to finish.

    Mr T Mole Cromwell Road

  • Ben was particularly enthusiastic and helpful. Martin, Paula, Sam and Will are all hard workers.

    Ms Goodey Franklin Road

  • We were very impressed with the Nick from start to finish. 

    Mr & Mrs Smith Lewes Road

  • The whole team were excellent, each one of them felt like family. Sharon had a lot of sorting to do at times but coped very well, a true profession...

    Mr Vernon Woodingdean

  • Paul Wilkinson was extremely helpful and efficient. The only problem was the vendors solicitor and Paul warned me of this. A good transaction all r...

    Mr Lavender Fiveways

  • An efficient, professional and friendly service. Helpful and a pleasure to do business with.

    Mr Beddington Brading Road

  • Hugely impressed with Ben & his team.

    Mrs Mead Upper Lewes Road

  • Thank you Paul and Archie, you gave an excellent service, as well as Kelly. I look forward to working with you again. 

    Mr White Fiveways

  • I have bought and sold 7 properties, and this was the best experience of an estate agents services I have found.

    Mrs Shepherd Hertford Road

  • Thank you for everything!

    Ms Tucker Willow Close

  • Very pleased with the excellent service throughout. Professional, friendly, efficient and no hard sell. Achieved above asking price. Thank you!

    Mr Witten Lewes Road

  • Quality advice about when and how to sell, which was spot on. Thank you.

    Miss Coleman Buller Road

  • Very thorough & very informative.

    Mr Michnowicz Waldegrave Road

  • A completely painless experience from start to finish. Thank you.

    Mr Woolven & Mrs Bessant-Woolven Lewes Road

  • Exceptional service throughout the process - should we decide to sell in the future we wouldn't hesitate to use your agency. You're a cut above the...

    Ms Windels & Mr Barham Fiveways

  • Cannot express our appreciation enough of all the efforts made by the Woodingdean team - they were fantastic.

    Mr John Mogridge Woodingdean

  • Please thank Paula at Lewes Road - Excellent service. 

    Mr & Mrs Nuthall Lewes Road

  • Graham Griffin provided us, and continues to provide us, will all-round excellent advice. We trust his knowledge and expertise.

    Mr Blackmore & Ms O'Sullivan Financial Services

  • Superb service as usual, I would always recommend you.

    Ms S Hike Blackthorn Close

  • It was a long, drawn out process that the people at Maslen helped me through, without the impression that it was a chore. So extremely professional...

    Mr McLagan Lewes Road

  • Our local office manager, Sharon Wareham was warm and friendly and kept us up to date at all times.

    Mr Hope The Brow

  • A really good experience.

    Mr Tibble Lewes Road

  • Maslens as a whole were really friendly and professional. I have to thank and congratulate Paula Carter for being superb at her job and exceeding m...

    Ms Warren Hove

  • The Woodingdean team were very friendly and approachable.

    Mrs Palmer Pitt Gardens

  • Brilliant. Well done to Sharon and the Woodingdean team.

    Ms Curtis The Ridgway

  • Extremely efficient. Nick and Paula are excellent. The weekly phone calls were much appreciated. 

    Ms Gray Lewes Road

  • I found the service to be courteous, friendly and efficient.

    Mr Upton Buller Road

  • Thank you. We found all the staff knowledgeable and really pleasant to deal with. 

    Ms Ansloos Lewes Road

  • Very impressive - professional and friendly, both Martin Timms and Paula Carter were excellent at keeping in contact with sensible advice based on...

    Mrs O'Connor Hove

  • Best Estate Agents ever experienced - professional, approachable, competent and exemplary. 

    Mr & Mrs Guest Riley Road

  • A very committed team who made the sale process very easy.

    Ms Rees Ticehurst Road

  • Very impressed with all dealings with Maslen. Paula Carter was in particular very knowledgeable and helpful. 

    Mr McBlane Hove

  • I was new to the area and viewed a lot of properties with a lot of different agents. Maslens were by far the best I came in contact with, so when i...

    Mr & Mrs Heer Lewes Road

  • Outstanding service from Sharon. James is an asset to Maslens & Harvey was so helpful and polite.

    Ms Cianchetta Selhurst Road

  • I wish we had used you to sell our property! Nice to meet honest people, who are genuinely interested in helping. Very pleased.

    Mrs Porter Taunton Road

  • Excellent customer service throughout. I will definitely recommend you, and use you again. Thank you.

    Ms Longley Kingsbury Street

  • Sharon and her team could not have done more in what was a difficult sale. 

    Ms Daly Woodingdean

  • Thanks David, all very professional.

    Mrs Flowers Foxdown Road

  • It was an amazing experience, everyone involved were fantastic. 

    Mr & Mrs Knight Woodingdean

  • Very happy with the service we got from you guys, everyone we dealt with was extremely friendly, professional and helpful. Thanks!

    Mr Brown Titian Road

  • Very comprehensive and professional. Nice people to work with and highly recommended. 

    Mr Alderton Ladysmith Road

  • In February 2016 I was looking to buy and sell very rapidly. Competition among buyers at the time was very high. Sharon @ the Woodingdean branch sh...

    Ms Helen Lyons Woodingdean

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