Bank of England cuts interest rates to 4.00%

As the Bank of England cuts interest rates, Steve Cox, our Chief Commercial Officer, believes this will create an even more competitive pricing environment for advisers and their landlord clients.

“Today’s decision by the Bank of England to cut Bank Base Rate to 4% is both welcome and necessary, given the current economic backdrop. With GDP falling in both May and June, there has been a growing expectation that the MPC would have to act, even with inflation rising in June and being above the 2% target at 3.6%. In a sense it shows the Bank has sensed there is a trade-off here and has come down on the side of trying to improve economic growth. Many analysts had warned of the risks of holding rates too high for too long, and this cut helps to ensure monetary policy does not compound those pressures while also delivering a clear boost for borrowers and the housing market.

“For the buy-to-let sector, this decision will filter through to swap rates, creating an even more competitive pricing environment for advisers and their landlord clients. At Fleet, we’ve already made a series of rate cuts across our buy-to-let range in recent weeks and will continue to review opportunities to do so where market conditions allow. With affordability improving and landlord confidence growing, today’s cut adds further momentum and should encourage advisers to proactively engage landlord clients on refinancing and investment opportunities.”