The Bank of England (BoE) has already trimmed interest rates from a peak of 5.25 per cent to 4.75 per cent – and there are more cuts to come. It feels tempting to look forward to 2025 as a year of lower mortgage costs. But for most mortgage holders, this might not be the case.
Economists are confident that the BoE will cut the base rate further next year – but thanks to the excitement of the Budget and the US election result, they can’t agree on how much. Forecasts from Pantheon Macroeconomics suggest that we will see just three 0.25 percentage points cuts next year, taking rates to 4 per cent.