The Bank of England has announced a reduction in the base interest rate from 4.75% to 4.5% – the lowest base rate since June 2023- and good news for homeowners, buyers, and sellers.
With these cuts, now is the perfect time to consider both selling and buying property. At Bradley Hall, we’re here to explain why these changes in interest rates could be the perfect catalyst for making your next move in the property market.
The Impact of Base Rate Cuts
A reduction in the base rate means the cost of borrowing money decreases, leading to lower interest rates on mortgages. For prospective buyers, this translates to reduced monthly repayments, allowing them to afford a higher-value property or invest more comfortably in their dream home. For sellers, this presents an opportunity to attract a wider pool of buyers who now find financing more affordable, potentially resulting in a quicker sale.
Why Is Now a Great Time to Sell?
1. Increased Buyer Affordability
With lower interest rates, buyers will have more purchasing power. This creates a larger pool of potential buyers, meaning that homes are likely to sell faster. A competitive market, with more buyers able to secure favourable financing, increases your chances of getting a great price for your property.
2. High Demand in the Market
While the overall property market may have seen fluctuations over recent months, the reduced interest rates will likely fuel renewed buyer interest. Lower monthly payments allow buyers to act quickly and feel confident in making offers. This heightened demand could result in a higher sale price for your home.
3. Attractive to First-Time Buyers
First-time buyers have struggled with affordability in recent years, but lower interest rates can make it easier for them to get onto the property ladder. If your home is suitable for first-time buyers, now may be the ideal time to sell to this motivated group.
Why Is Now a Good Time to Buy?
1. Lower Mortgage Repayments
With mortgage rates now more affordable, it’s the perfect time to take out a loan for your next home. Lower interest rates could save you thousands over the life of your mortgage, making homeownership more attainable than it has been in the past few years.
2. More Property Choices
With more people looking to sell, you’ll find an increased selection of properties available. Whether you’re searching for your first home, upgrading to a bigger space, or downsizing, the wider variety of homes in the market provides ample options to suit your needs.
3. Potential for Property Value Growth
With lower interest rates driving buyer demand, property values could rise as competition heats up. By purchasing a home now, you could potentially benefit from future appreciation in property value as the market responds to these changes in rates.
Bradley Hall’s Expert Advice
Whether you’re looking to buy, sell, or both, now is a strategic time to make your move in the property market. Our expert team at Bradley Hall is here to guide you through every step of the process and ensure you make the most of this opportunity. As a full-service agency, we can connect you to our mortgage experts, as well as surveyors and valuers to ensure the process is as smooth as possible.
The latest base rate cuts are the perfect moment to act. Buyers can secure more favourable mortgage deals, and sellers can tap into an active market with eager buyers. With our years of local expertise and market insight, we can help you navigate these changes to achieve the best possible outcome.
Ready to make your next move? Get in touch with Bradley Hall today to discuss your options in this shifting market- call us on 0191 232 8080 or email newcastle@bradleyhall.co.uk
