Market Insights

Bank of England Rate Cut: What It Really Means for Your Mortgage

The Bank has cut rates to 4.75%. Should you remortgage now or wait? We break down the numbers.

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James Patterson

Property Expert

15 December 2025
5 min read
Bank of England Rate Cut: What It Really Means for Your Mortgage
Market Insights

Bank of England Rate Cut: What It Really Means for Your Mortgage

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Rate Cut Analysis for Buy-to-Let Landlords

The Bank of England's Monetary Policy Committee voted to reduce the base rate by 0.25%, bringing it to 4.75%. For landlords, this has immediate implications.

Immediate Impact

Tracker Mortgages: If you're on a tracker, your payments will reduce within 1-2 months. On a typical £200,000 BTL mortgage, expect savings of approximately £30-40 per month.

Fixed Rate Deals: No immediate change, but new fixed rates are already adjusting. Current 5-year BTL fixes are around 5.2-5.8%.

Should You Remortgage Now?

Wait if:

  • Your current fix doesn't expire for 6+ months
  • You have early repayment charges exceeding 2%
  • Markets expect further cuts (2-3 more predicted in 2025)

Act now if:

  • You're on SVR (Standard Variable Rate)
  • Your fix expires within 3 months
  • You need to release equity

Rate Predictions for 2025

Most economists expect:

  • Base rate: 4.0-4.25% by end of 2025
  • BTL 5-year fixes: 4.5-5.0%
  • BTL 2-year fixes: 4.75-5.25%

Portfolio Stress Test

Use our mortgage calculator to stress-test your portfolio at different rate scenarios. Understanding your breakeven point is crucial before making refinancing decisions.

Action Items

  1. Check your current mortgage expiry date
  2. Calculate your current LTV
  3. Get quotes from 3+ lenders
  4. Factor in arrangement fees vs. rate savings
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Written by James Patterson

Property Expert

Expert contributor at roost, providing insights on UK property management, compliance, and investment strategies.

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