Interest Rates Cut to 4.25%

Published 08 May 2025

The Bank of England has cut interest rates for the second time this year, lowering the base rate to 4.25% in a move welcomed by the housing industry.

This is good news for homebuyers and is expected to provide a boost to market sentiment. The cut is likely to lead to lower mortgage rates over time, offering some relief for existing borrowers and improving affordability for first-time buyers.

In a statement, Bank of England Governor Andrew Bailey said:

Inflationary pressures have continued to ease so we’ve been able to cut rates again today. The past few weeks have shown how unpredictable the global economy can be. That’s why we need to stick to a gradual and careful approach to further rate cuts. Ensuring low and stable inflation is our top priority.