Interest Rates Cut: Will your mortgage drop?

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00:00The Bank of England has cut interest rates from 4.25% to 4%. It's the fifth cut in a year,

00:07taking rates back to where they were in March 2023. But will your mortgage get cheaper?

00:13For most people, no. About 85% of mortgages are on fixed rates, so monthly payments won't change.

00:21If you have a tracker mortgage, roughly 590,000 homeowners do, your rate will drop in line with

00:28a cut. On a typical balance of £140,000, that means about £29 less to pay each month.

00:37If you're on your lender's standard variable rate, that's about 540,000 people. You might

00:43see a drop too, but it's not guaranteed. If the lenders pass on in full, the average saving

00:48would be around £14 a month. And for around 900,000 people whose fixed deal ends later

00:54this year, the next move in mortgage rates will be key. Come renewal time, payments could

01:00still rise sharply.