🏡 Interest Rate Cut: What It Means for Homeowners in Bishop’s Stortford, Stansted & Surrounding Areas

Interest Rate Cut: What It Means for Buyers, Sellers & Homeowners in Bishop’s Stortford, Stansted & Surrounding Areas
The Bank of England has reduced the Base Rate by 0.25%, bringing it down to 4.25% — the second cut of the year. For anyone buying, selling, or refinancing a property in Bishop’s Stortford, Stansted Mountfitchet, Takeley, Elsenham, or Great Dunmow, this change is significant.

At Willmott & Lake, we’re already seeing increased interest in the local property market, and this move could add even more momentum.

Why has the interest rate been cut?
The Bank of England adjusts the Base Rate every six weeks to manage inflation and economic growth. With inflation currently at 2.6% (just above the 2% target), this cut is part of a cautious strategy to keep the economy moving in the right direction.

How mortgage rates are changing
Mortgage rates have been easing slowly over recent weeks, and this trend is likely to continue.

• 2-year fixed rate average: 4.64%

• 5-year fixed rate average: 4.60%

Some lenders have already started adjusting their pricing, and more reductions could follow.

If you’re considering a mortgage in Stansted, Takeley, or Elsenham, it’s a good time to explore the market.

How this affects your current mortgage

• Fixed-rate: Your payments stay the same until the end of your deal.

• Tracker or variable: Your payments are likely to drop, reflecting the new Base Rate.

If your fixed deal is ending soon, you can often lock in a new rate up to six months early, avoiding a costly jump to your lender’s Standard Variable Rate, currently averaging 7.5%.

Improved affordability for local buyers
This rate cut could also help with mortgage affordability checks. Lenders often base these checks on their SVR plus a margin, so a drop in SVR means some borrowers may now qualify for higher loan amounts.

This is particularly helpful for buyers in Great Dunmow, Bishop’s Stortford, and surrounding villages, where competition for family homes remains strong.

What’s next for interest rates?
Market forecasts suggest the Base Rate could drop further in 2025, potentially reaching 3.75% by year-end. The next review is set for 19th June 2025, so we’ll be keeping a close eye on further changes.

Thinking of moving or remortgaging in Bishop’s Stortford or nearby?
At Willmott & Lake, we work with buyers and sellers across Bishop’s Stortford, Stansted Mountfitchet, Takeley, Elsenham, and Great Dunmow. Whether you’re planning to move or just want clarity on your mortgage options, we’re happy to help.

📞 Call us on 01279 801165 or contact us here to speak with a member of our friendly, expert team.