Will the Bank of England base rate reductions result in lower mortgage rates?

Following the recent decision by the Monetary Policy Committee (MPC) to reduce the Bank of England base rate, speculation has intensified regarding potential further reductions throughout 2025 and what impact the changes could have on UK mortgage rates.

Although historically mortgage rates and the base rate have followed a similar trend, many mortgage lenders product pricing is dictated by the cost at which they can obtain the funds rather than them being directly linked to base rate fluctuations.

This mortgage pricing can be impacted by many factors, some of which are based on global economy and not just what is happening in the UK. Economists and industry commentators have differing opinions on what the market can expect, and as always only time will tell. However, the overriding sentiment seems to be that positive changes are on the way.

So, what does all this mean for yacht crew looking to purchase a property or remortgage in the coming months, and what opportunities might this bring.

Lower mortgage rates are likely to stimulate the First Time Buyer market, which is a key driver for those looking to buy further up the property ladder. In addition, lower mortgage rates will help in terms of ‘mortgage affordability’ and with lower mortgage payments many people may decide that “now is the right time”, especially if they have been ‘frozen out’ in recent years based on the size of mortgage they could achieve and the associated payments linked to historically higher mortgage rates.

Getting advice on all the aspects of buying a property in the UK and securing the required mortgage can be crucial in putting yacht crew in the best position to move forward with a purchase when they find a property, especially as sometimes it can happen whilst they are working and onboard their
boat.

Find out more here on what 2025 will offer yacht crew looking to buy property in the UK.

CrewFO are able to connect members with the services of a mortgage broker whose advisers have many years’ experience helping yacht crew and seafarers, and as such understand the challenges working on a superyacht bring when looking to arrange a mortgage. Click here for more information on CrewFO services.