Base Rate cut won't trigger increased mortgage demand - comment from Afin Bank

08 May 2025

Following today's Base Rate announcement by the Bank of England, Alan Davison, Chief Commercial Officer of Afin Bank, commented:

“Today’s Base Rate cut was never in doubt as the economy desperately needs a boost, but I’m not sure it will immediately trigger an increase in mortgage demand.

“Nationwide reported a 0.6% drop in house price growth in April, following a jump in transactions in March as buyers rushed to beat the stamp duty changes. Whether that recovers in the coming months depends on consumer confidence, which is thin on the ground.

“Growth predictions for the UK economy have been cut, while inflation is expected to rise again, leading to higher prices and further pressure on household finances. So the big question is could we see further rates cuts from the Bank of England, which could cause borrowers to hold fire on their mortgage plans until interest rates have stabilised.”

For more information about Afin Bank visit www.afinbank.com and follow it on @AfinBankUK on X and Instagram.