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UK Base Rate Set to Drop, Boosting First-Time Buyers

5/5/2025

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Summary

Story summary

Morgan Stanley predicts the UK base rate could fall to 3.25% by year-end, signaling imminent cuts from the Bank of England. In a positive turn for first-time buyers, lenders such as Barclays and Gen H are slashing fixed mortgage rates. Meanwhile, house price growth has eased to 3.4% in April, but market activity is set to pick up as summer unfolds.

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Story summary

Morgan Stanley predicts the UK base rate could fall to 3.25% by year-end, signaling imminent cuts from the Bank of England. In a positive turn for first-time buyers, lenders such as Barclays and Gen H are slashing fixed mortgage rates. Meanwhile, house price growth has eased to 3.4% in April, but market activity is set to pick up as summer unfolds.