The Bank of England cuts base rate and announces 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 now at their lowest level in over 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.

In addition to the interest rate changes, the recent budget has confirmed that stamp duty relief thresholds will be changing from 1 April 2025. This move is part of the government’s plan to raise £40 billion for public spending. Stamp duty, which must be paid within 14 days of completing a residential property purchase, raises millions of pounds each year.

The announced changes will make it more expensive to buy a first property or move up the property ladder if the purchase price exceeds £300,000 for first-time buyers or £125,000 for home movers. However, there may be potential savings for those who are able to buy a property before the new thresholds come into effect.