What This Means for You — from JW Woods Estate Agents
If you’ve been waiting for mortgage rates to ease, next month could bring welcome news. Here's why a drop appears likely — and why acting now could benefit both buyers and current homeowners.
Why Rates Are Heading Lower
1. Bank of England poised to cut rates in August
Despite holding steady at 4.25% in June, top economists and brokers are confident the Monetary Policy Committee will reduce the base rate to around 4% when they meet on 7 August . Slowing GDP and a creeping jobs slowdown have created enough economic slack to justify lighter interest, according to recent analysis
2. Mortgage lenders racing to offer better deals
In anticipation, lenders have already begun trimming their fixed-rate deals. Competition is heating up, with two-year and five-year deals now averaging around 5.05% and 5.03% respectively — their lowest since late 2022.
The Impact: What Homebuyers and Remortgagers Should Know
- Sharper mortgage rates for buyers and those remortgaging
The current decline offers a chance to lock in a better rate before any future uptick. Two-year fixed mortgages around 5.05% and five-year at 5.03% are becoming more - Remortgaging window opens
If your fixed-term deal ends later this year, exploring options before the August rate cut could secure more affordable monthly payments. - Short-term vs long-term choices
A shorter-term fix (e.g., 2 years) allows taking advantage of future rate cuts, while a longer-term fix offers consistent payments and insulation from market swings.
Mortgage rates are trending downward, as the Bank of England appears poised to cut the base rate in August and lenders start adjusting their products. Whether you're buying a new home or remortgaging, this is a prime moment to secure a competitive deal.
At JW Woods, we can connect you with trusted mortgage advisors, support you in comparing deals, and help you plan with precision — so you can make the most of this potential rate drop. Contact us today to explore your options.
Sources from Home Owners Alliance and Money Week