Bank of England base rate drop and stamp duty changes

The Bank of England has cut the bank base rate to 4.75% for the second time this year. This means interest rates are at their lowest level in more than a year.

The base rate also affects the interest rates that lenders charge borrowers, so mortgage rates are predicted to see adjustments over the coming weeks.

The recent budget has confirmed that stamp duty relief thresholds will change from 1 April 2025 to contribute to the government’s plan to raise £40bn for public spending. Stamp duty must be paid within 14 days of completing a residential purchase and raises millions of pounds each year.

The announced changes will make buying a first property or moving up the property ladder more expensive if purchasing a property above £300,000 for first-time buyers and above £125,000 for home movers. However, there could be savings by buying a property before this deadline.

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