Interest rates still expected to fall later this summer

25 June 2025 Uncategorised

Analysts say they expect the Bank of England to cut interest rates again when its key committee meets in early August. In the past year there have been four cuts, although in June the Bank kept rates unchanged. Analysts say:

• many mortgage lenders have cut rates anyway, to win business;
• two more rate cuts are likely this year: one in August, another in the autumn; and
• Inflation (a key factor behind interest rates) will fall gently in the second half of the year.

It’s worth remembering that on average only 48% of buyers have mortgages, so although interest rates are important, they do no affect every part of the housing market.