Brokers are expecting two more rate cuts from the Bank of England this year, according to research from Landbay.
In a poll of 105 mortgage intermediaries, taken after the Bank of England’s rate cut earlier in February, a majority (54%) expected two more cuts in 2025.
Over a quarter (26%) expected one more rate cut, while 14% anticipated three.
Only 4% of brokers did not expect any further rate cuts this year and that the base rate would end 2025 at 4.5%.
At the other end of the spectrum, 2% expected rates to fall to 3.5% by the end of the year.
“Brokers can’t see the future obviously, but the wisdom of crowds does give us some insight here and suggests that, when they’re talking to landlords, brokers should make it clear that the interest rate landscape has changed,” said Rob Stanton, sales and distribution director at Landbay (pictured above).
“The Bank of England is going to have to change its priorities in face of rising inflation and keep interest rates higher for longer.
“It’s well known that timing can make or break a deal in BTL, making broad product choice, easy application and fast decision making even more valuable to both brokers and landlords in such changeable market conditions.
“No matter the path of future interest rates, this has to remain a priority for lenders.”
