In a widely anticipated move, The Bank of England has lowered its base rate for the second time this year, going down from 4.5% to 4.25%.

The move makes it clear that economic concerns over the impact of President Trump’s trade policies on the global economy are now taking priority over inflation worries, and so this downward trend is not only likely to continue it will accelerate.

According to recent analysis, most economists now expect a minimum of two more rate cuts from the Bank of England before the end of 2025.

Financial institution ING, though, is forecasting three more 0.25% cuts this year, which would bring the base rate down to 3.75%, while Deutsche Bank now expects four more reductions, potentially bringing rates down to 3.5%.

At the same time, the Financial Conduct Authority is encouraging banks and building societies to ease their affordability tests and allow borrowers to move their mortgages more easily between lenders. It means, for some, it is now possible to borrow up to as much as 20% more than previously.

As you can see from the Best Buy tables, mortgage costs are on a similar trajectory.

Below is a selection of this month’s best buys from Moneyfacts.co.uk:

Two-year fixed rates: 3.89% from Nationwide. Product fee £999. 60% LTV.
3.94% from HSBC. Product fee £999. 60% LTV.

Three-year fixed rates: 3.99% from Nationwide BS. Product fee £999. 60% LTV.
4.17% from Yorkshire Building Society. Product fee undisclosed. 60% LTV.

Five-year fixed rates: 3.89% from Nationwide. Product fee £999. 60% LTV
3.94% from Barclays Mortgage. Product fee £999. 60% LTV.

Discounted variable: 4.27% For 2 years. From Barclays Mortgage. Product fee £0. 75% LTV.
4.29% For 2 years. From Progressive BS. Product fee £0. 60% LTV.

BUY-TO-LET (BTL)

Best two-year fixed rate: 2.79% from The Mortgage Works. Arrangement 3.00% Advance. 65% LTV.

Five-year fixed rate: 3.74% from The Mortgage Works. Arrangement 3.00% Advance. 65% LTV

Best Discounted variable: 3.30% From The Stafford BS. Booking £100, Arrangement 5.00% Advance. 70% LTV.

The information we provide is our personal opinion and should not be relied upon for financial advice. Should you need financial advice or guidance please contact an appropriate professional.