Martin Lewis issues mortgage 'clarification' after Bank of England base rate cut

James Rodger
·2-min read
Martin Lewis issues mortgage 'clarification' after Bank of England base rate cut
-Credit: (Image: Reach Publishing Services Limited)


Martin Lewis has issued a mortgage clarification after the Bank of England cut its base rate today. The BBC Sounds podcast star spoke out on Twitter, now X, in the wake of the decision from the Bank of England on Thursday (November 7) today.

He said: "Just on this I reposted because I had a brypo (brain typo). Originally i wrote £25 a month cheaper even though I meant to write £15 a month (because the 0.25% was stuck in my head). I then didnt spot it even though i checked it because of my brypo (i need more sleep). Apologies" On Twitter/X earlier, Martin said: “Mortgages: Tracker rates will get cheaper by roughly £15 per month per £100,000 (variable and discount rates should drop too but don't have to go by [the] same amount). Your fixed rate mortgage will not change.

"Though the rate you can fix at may get cheaper (although as they're based on predictions of future interest rate some of this cut is already baked in). Savings: Easy access rates are usually variable, so both cash ISAs and normal savings, will likely drop by around 0.25% points, though as it’s competitive at the top, some of the best may leave it a little later to drop.

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“Your fixed rate savings will not change.” Rachael Hunnisett, director, longer-term lender April Mortgages, commented: “Today’s rate cut has been on the cards since inflation plummeted to a three and a half year low. While it may not be a surprise to markets, it will be welcome news to borrowers, in particular those on variable rate-mortgages.

“As for the Bank of England, it is still walking somewhat of a tightrope when it comes to managing the economy. Inflation dipping below 2% was a positive step forwards, but balancing rising consumer prices and central bank policy remains a delicate challenge.

"For financial markets, particularly SWAPs that drive mortgage pricing, this inflation trend has been closely monitored. The anticipated November rate cut was already priced into market expectations, making today’s adjustment well-aligned with long-standing projections.

“However, the future is far less certain and this presents a quandary for homeowners. Mortgage customers will have to carefully weigh-up their long-term plans and risk tolerance when selecting a fixed-rate product.

“In an unpredictable market where rates are likely to fluctuate, choosing the cheapest two-year is not the solution for every borrower.”

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