The Bank of England has delivered a base rate cut in August 2025, trimming the rate from 4.25% down to 4.0%.

This quarter-point reduction – the latest in a gentle cycle of easing – marks a pivotal moment for borrowers across the UK. In this update, we explain what the rate cut means for different types of clients and loans. We’ll explore the impacts and opportunities for residential homeowners, those looking to remortgage, buy-to-let investors, British expats, high-net-worth borrowers, and property developers.

With interest costs finally edging down, now is the time to consider your options and strategy. Let’s break down the key implications and our advice for each segment of the market in light of this decision.

BoE Cuts Base Rate to 4.0% – A Turning Point for Borrowers

After an extended period of rising rates to combat inflation, the Monetary Policy Committee’s August 2025 decision represents a clear shift in stance.

The Bank Rate is now 4.00%, down from 4.25%, following a narrow 5–4 vote by policymakers. This is the Bank of England’s second 0.25% cut this year (the last was in May) and brings base rates to their lowest level since early 2024.

For borrowers, this rate cut signals that the peak of expensive borrowing is behind us. However, the close vote also underscores that further cuts are likely to be gradual and data-dependent – there’s cautious optimism rather than an all-out dash to low rates.

From our perspective at Willow Private Finance, we’ve seen how higher interest rates in the past year squeezed affordability for many clients. This trend reversal offers some welcome relief. Importantly, markets and lenders have been anticipating a cooling of rates, so many banks had already started trimming mortgage prices and loosening criteria over the summer.

Now that the cut is confirmed, we expect even more movement: competitive deals emerging, slightly easier loan assessments, and a renewed confidence in property financing. Below, we examine the practical impact of the rate cut on each borrower group, and how you can take advantage of the changing mortgage landscape.

Impact on Residential Mortgage Borrowers (Homeowners & Buyers)

For residential homeowners and first-time buyers, a base rate cut is good news for affordability. If you have a tracker mortgage or a variable-rate deal linked to the BoE base rate, you should see your interest rate drop by 0.25% almost immediately, reducing your monthly payments.

Lenders typically pass on base rate cuts in full to tracker customers (and many Standard Variable Rates should dip as well). For example, someone on a tracker at Base + 1% will see their pay rate fall from 5.25% to 5.0%. It’s a modest change, but every little helps when rates have been high.

Even fixed-rate borrowers, whose current payments won’t change until their deal ends, have reasons to be upbeat.

The outlook for refinancing is improving – the new fixed deals on offer now and in the coming months are likely to be cheaper than those seen earlier in 2025, provided the downward rate trend continues. In fact, lenders have been competing to offer sub-4% fixed rates for high-quality borrowers since the spring, and that competition is set to continue.

Just a few months ago, 5-year fixes below 4% were rare; now multiple high street banks have headline deals under that threshold for those with substantial equity or depositswillowprivatefinance.co.uk. The era of ever-rising mortgage costs has peaked, and banks are vying for business as borrowing costs drift lowerwillowprivatefinance.co.uk.

Mortgage criteria are also easing slightly:

With a gentler rate environment, regulators and lenders have grown more comfortable taking on new borrowers. We’ve seen signs of flexibility such as consultations to relax the 4.5× income cap and some lenders lowering their stress test rates, which makes passing affordability checks easierwillowprivatefinance.co.ukwillowprivatefinance.co.uk.

There are even niche offerings for certain professionals and high earners – for instance, a specialist lender recently made waves by allowing income multiples up to 6 or 7× salary on long-term fixes for select clientswillowprivatefinance.co.uk. While such cases are exceptions, they indicate a more accommodative lending climate developing alongside rate cuts.

For homebuyers, lower rates mean improved borrowing power and potentially a resurgence in housing demand. If you were discouraged by sky-high mortgage quotes earlier in the year, it’s worth checking again now. We’re not predicting a sudden boom, but if mortgages become more affordable, more people can consider buying – which should support house prices and buyer confidence.

Indeed, house price indices that dipped in late 2024 have stabilized in recent months as mortgage rates started fallingwillowprivatefinance.co.uk. With the base rate now lower and expected to ease further, 2025 could be a window where housing affordability slowly improves.

Willow’s advice:

Review your mortgage options. If you’re on a lender’s Standard Variable Rate or a tracker, enjoy the immediate savings but also ask whether now is a good time to lock in a deal. Fixed rates are markedly lower than they were six months ago, so securing a new fix could protect you from any future surprises.

On the other hand, if you believe rates will keep dropping, you might consider a short-term fix or a tracker to benefit from potential further cuts – just have a plan in case the pace of cuts slows. Every borrower’s situation is different: we can help you weigh a tracker vs. fixed strategy based on your risk comfort.

The main point is to stay proactive. As brokers, we’re seeing lenders reintroduce products and sweeten deals (e.g. longer-term fixes, cashback incentives, green mortgage perks), so it’s an excellent time to shop around. Even if your current fixed deal isn’t ending for a while, get a head start on research – many banks allow securing a new rate up to 6 months in advance.

Remortgaging in a Falling Rate Environment

A major segment set to benefit from the rate cut is the remortgage market. Thousands of homeowners have fixed-rate deals ending in 2025, coming off ultra-low pandemic-era rates and facing a steep jump in rates.

For these borrowers, the base rate cut offers a glimmer of relief: the remortgage deals available now are better than those just a few months ago. If you were looking at 5.5% new rates earlier this year, you might find offers at 5% or lower today for the same loan-to-value. That can significantly soften the blow of refinancing. Every quarter-point matters when you’re dealing with a large loan.

The key with remortgaging in this climate is timing and strategy.

Rates are trending down, but not dramatically and not all at once. Lenders have already priced in some of the expected future cuts, so it might not pay to wait forever for that “next cut” – especially given the MPC’s cautious tone.

Our advice is to start the remortgage process early and be ready to lock in a good rate when you see one. You can typically secure a new mortgage offer 3–6 months before your current deal ends, allowing you to ride the rate downtrend without risking lapse onto a high Standard Variable Rate. Many of our clients are monitoring the market with our help: if a particularly attractive fixed deal or tracker pops up, we help them pounce quickly.

Remember that while base rate influences mortgage pricing, other factors count too – like lender competition and swap rates. We’re actually in a mini price war among lenders now: banks are actively cutting their fixed rates to attract remortgage customers, even beyond the base rate movement. This is a prime time to shop around or use a broker to find if there’s a better deal than your current lender’s offer. Even if you’re mid-fixed term, in some cases it could make sense to pay an Early Repayment Charge and refinance to a much lower rate, but that calculation must be done carefully.

If you’re considering switching, look at your whole picture: has your property value increased since you last fixed? If so, you might be in a lower loan-to-value bracket and eligible for improved pricing. Lenders have tiered rates, and dropping from say 80% LTV to 60% LTV because of house price growth can shave a substantial margin off your interest rate.

Also evaluate if you need to adjust your mortgage structure upon remortgaging – for instance, moving from interest-only to repayment, or consolidating other debts. A lower rate environment can be an opportunity to make such changes more affordable.

For those with multiple properties or complex situations, 2025’s easing rates might enable some equity release or portfolio refinancing that was tough when rates were higher. We’ve helped clients who postponed raising capital last year (due to expensive terms) to finally proceed with remortgages now and unlock funds for renovations or new investments.

If raising cash, note that lenders will want to know the purpose – but expanding your property portfolio or improving your home are usually looked on favourably, especially now that the cost of funds is lower.

Willow’s advice: Don’t be complacent if you have a remortgage on the horizon.

Use this rate cut as a prompt to check your mortgage’s expiry date and start planning. Our team often asks clients to get in touch 4–6 months before their fixed rate ends. Given the current market, our strategy is to secure a rate lock early (many offers last 6 months) – that way, you have a deal in hand.

If rates drop further in the interim, we can often renegotiate or switch you to a cheaper product before completion. It’s a win-win: you’re protected if rates rise again unexpectedly, but you stay flexible to benefit from any further falls.

The bottom line is, with rates coming down, there are savings to be had, but it takes an active approach to capture them. If you’re unsure whether it’s the right time to remortgage, or how to go about it, feel free to explore our guide on identifying the right time to remortgage in 2025 ( read article - Is it Time To Remortgage? ) for key signs and tips.

And as always, we’re here to provide personalised advice based on your mortgage balance, penalties, and goals.

Implications for Buy-to-Let Investors

Buy-to-let landlords have endured a tough few years: higher interest rates ate into rental profits, and stricter rules (like stress tests and tax changes) squeezed viability.

The August 2025 rate cut brings a welcome tailwind for this sector. Lower base rates translate to lower mortgage costs for landlords, especially for those on tracker or reversion rates.

Many professional landlords have portfolios on variable or short-term deals, so a 0.25% reduction in base rate can improve rental yield margins almost overnight. For instance, a landlord with a £200,000 interest-only loan at a lifetime tracker will save about £500 a year in interest from this cut alone. That’s money back in your pocket, improving your net rental income.

Perhaps more importantly, the direction of travel is downward, which boosts confidence. Landlords can start to revisit expansion plans that were put on hold. With financing costs easing, some investors will feel more comfortable refinancing to release equity for new purchases.

We are already hearing from clients who want to seize this moment: for example, refinancing an existing buy-to-let to a cheaper rate and freeing up capital to invest in another property while prices are relatively soft. If done carefully, this kind of portfolio growth strategy can pay off, as borrowing low now might lock in a great deal on a new asset. (Of course, always crunch the numbers – factor in any fees or early repayment charges on the refinance versus the potential returns of the new investment.)

The rate cut also has a positive knock-on effect on rental demand. In uncertain economic times, some would-be first-time buyers delay purchasing and keep renting – which means demand for rental properties stays strong or even riseswillowprivatefinance.co.uk. We’ve seen this dynamic in recent months: economic jitters can bolster the rental market, benefiting landlords with good properties to offer.

With strong rental demand coupled now with lower interest expenses, landlords could find their interest coverage ratios improving. Lenders typically require that rental income covers 125% or more of the mortgage interest (at a stressed rate), and as actual rates fall, this test becomes a bit easier to satisfywillowprivatefinance.co.uk.

In practical terms, a deal that barely met a lender’s criteria at 5.5% might comfortably pass at 5.0%, potentially allowing you to borrow more or avoid upping your deposit.

Another trend to watch is product choice for landlords. In a high-rate environment, many buy-to-let products (especially high LTV or specialist ones) vanished. But as conditions normalise, lenders are bringing back products and sharpening pricing for investors. We expect to see more high-LTV BTL mortgages and innovative options reappear as confidence returnswillowprivatefinance.co.uk.

Already, tracker mortgages and discount rates are gaining popularity among professional landlords who anticipate further base rate declines – these products will automatically get cheaper if the BoE cuts again, offering flexibility versus fixing. Conversely, some landlords may opt for 5-year fixed deals now around 4% to ensure stability in their portfolio outgoings. There isn’t a one-size-fits-all; it depends on your portfolio strategy and risk appetite.

Additionally, many investors are using limited company structures (SPVs) for new purchases due to tax efficiency. Limited company BTL rates have historically been slightly higher than personal ones, but the gap narrows when overall rates drop. So the cost penalty for using a company is less painful at a 4% base than it was at 5%.

If incorporation was on your mind purely for Section 24 tax reasons, the improving interest market makes it more feasible. (For a refresher on the pros and cons of the company route, check out our Limited Company buy-to-let mortgage guide – it explains how interest rates and relief differ for SPVs.)

Willow’s advice:

Landlords should view this rate cut as an opportunity to reassess their portfolio finances. Refresh your mortgage strategy:

• could you remortgage some properties to a lower rate and boost cash flow?
• Is now the time to raise capital for that next property while rates are on a downward slope?

Every landlord’s situation is unique – for instance, your decision might differ if you’re a highly leveraged investor versus one with lots of equity.

We recommend performing a portfolio review: list all your properties, current interest rates, and end dates of any fixed periods. Then let’s talk about which ones to tackle first. Often, starting with the highest-rate or soon-to-expire mortgages yields the biggest gains.

Also, don’t forget maintenance of your assets: improved cash flow from lower rates might allow you to invest in property upgrades (like EPC improvements) that can further increase rent or future value. Our recent article on UK buy-to-let strategies in 2025 covers these ideas in depth. In short, the environment for landlords is finally brightening, but success will come to those who plan strategically and remain agile with their financing.

What the Rate Cut Means for Expat and Overseas Borrowers

If you’re a British expat or a foreign national looking at UK property, you might be wondering how a base rate cut affects you.

Expats often face higher interest rates and more limited choice when getting UK mortgages – usually through specialist lenders or private banks – so any general market improvement is significant. The 0.25% base reduction will flow through to many expat mortgage products, making them a touch cheaper.

For instance, some expat tracker mortgages (or those priced off LIBOR/SONIA equivalents) will come down in tandem with the base rate move. Even fixed rates offered to expat buyers could get repriced slightly lower as funding costs fall across the board. It’s a small win, but in the expat context where rates are often 0.5–1% higher than standard, every basis point helps.

Perhaps more importantly, the rate cut is a signal of stability and confidence in the UK market, which expat and overseas investors watch closely. Many of our expat clients in places like the UAE, Hong Kong, or South Africa have been sitting on the fence, concerned about UK economic uncertainty and high rates.

Now, with inflation easing and the BoE starting to support growth, sentiment is improving. We expect more expats to re-engage with UK property purchases or refinancing plans that they put off in 2024. The calculus is changing: not only are mortgage rates a bit lower, but the pound has been relatively stable, and UK house prices have corrected slightly – a combination that makes entry points more attractive than a year ago.

That said, expat borrowers still face the unique hurdles of foreign income and credit profile. Lender criteria in this niche remain tighter than for domestic borrowers.

For example, even if interest rates are lower, you might still need a larger deposit (often 25%+ for expat deals) and thorough documentation of overseas income and assets. If anything, when rates were high, many expat lenders imposed extra conservative affordability calculations (some would “haircut” foreign income by 25% or more in their stress tests). A calmer rate outlook could encourage lenders to relax some of those buffers – maybe they’ll haircut 10% instead of 25%, for instance – effectively making it easier to borrow a bit more against your earnings.

We are watching closely to see if any expat-specialist lenders adjust their loan-to-income or debt-to-income caps now that the interest environment is less extreme.

For expats looking to remortgage an existing UK property, this is a crucial time to act. Many expat mortgage deals are short term (2- or 3-year fixes) and were taken out when rates were lower. If yours is expiring soon, you’ll want to secure a new rate before it jumps. Thankfully, with the base rate now 0.5% lower than at the start of the year, the new expat remortgage deals should be a bit friendlier.

We’ve been helping UK nationals abroad to refinance and save significant sums. One recent Willow client, for example, was an expat in Asia with a buy-to-let in London: by remortgaging in the current market, we managed to drop his rate by over 0.75% compared to the deal he almost took in late 2024. That’s thousands saved annually, even after accounting for fees. The window is open for similar cases.

Willow’s advice:

Expats and overseas buyers should stay informed and seize opportunities quickly. The expat mortgage market is smaller and can move fast – when mainstream rates drop, sometimes only a handful of specialist lenders cater to expats, and they can get oversubscribed. It’s wise to get pre-approval or a decision in principle early if you plan to buy or refinance. That way, you’re ready to lock in a rate as soon as you find a property or decide to switch.

Work with a broker (like us) who understands the expat space; we can steer you toward the lenders that are currently most competitive for non-resident borrowers.

We also recommend reviewing our comprehensive 2025 expat mortgage guide – it covers eligibility, deposit requirements, and strategies for expat and overseas applicants. Lower interest rates are a tailwind, but success still hinges on meeting documentation requirements (proof of foreign income, credit references, etc.) and sometimes being creative (like using a private bank or an international division of a UK bank).

With our help, expat clients can navigate these challenges and make the most of this improving market. Overall, if you’re an expat with UK property ambitions, the recent rate cut is a green light to progress your plans – just do so with proper guidance and a thorough understanding of the criteria.

Outlook for High-Net-Worth (HNW) and Large Loan Borrowers

High-net-worth individuals and large loan borrowers stand to benefit in distinctive ways from the Bank of England’s rate cut.

Many HNW clients borrow through private banks or bespoke lending arrangements that often have floating interest structures. For example, a common setup for a £5M+ loan is a tracker at “Base + margin” or a loan tied to money market rates.

If you’re in this category, you’ll likely see your interest cost drop automatically by 0.25% as a result of the base rate change. On a multimillion-pound loan, that can be a substantial monthly saving. Wealthy borrowers who have been paying, say, 5.5% on a large interest-only mortgage will welcome the move to 5.25%. It improves cash flow, making it cheaper to carry high-value properties.

But beyond immediate savings, it’s the strategic landscape that becomes interesting for HNW clients. Lower base rates generally unlock more flexibility and creativity in financing options. Private banks, for instance, often condition their offers on the overall rate environment. When rates were high and climbing, they were more cautious.

Now, with rates easing, we’re seeing private lenders become more aggressive in competing for HNW business.

They’re more inclined to offer perks like higher loan-to-value ratios or interest-only terms when they expect rates to drift downward (since the risk of rates spiking unexpectedly is reduced). We anticipate more generous offers from private banks – for example, a lender might go from 60% LTV up to 65–70% LTV on a £5M property for the right client, or they might reduce the required Asset Under Management if you bring investments to the table in exchange for a lower mortgage rate.

These nuanced benefits often appear when the environment is optimistic.

Another factor is that many HNW borrowers use complex income or asset-based lending to qualify, rather than traditional pay-as-you-earn income. A stable or falling rate backdrop makes asset-based and liquidity-based lending more palatable for banks. We’ve found that certain lenders are now more willing to accept investment portfolios or foreign income streams as part of the affordability, because the lower interest costs improve the ratios.

For instance, if you have a big stock portfolio, a private bank might lend against it or count its yield as income – and with mortgage rates down, the required yield to cover interest is easier to meet. Likewise, those with substantial rental portfolios or irregular income (bonuses, dividends) will find lenders a bit more accommodating, since future interest payments are projected to be lower, reducing risk. (For a deep dive on how wealthy clients leverage assets for mortgages, see our guide on financing multi-million pound properties – it outlines strategies like asset-backed lending and private bank criteria.)

Importantly, high-end property markets often move counter-cyclically: when interest rates drop, savvy investors see an opening to acquire prime assets at a relative discount. We might see an uptick in luxury property purchases or refinances driven by HNW individuals taking advantage of cheaper leverage.

International high-net-worth buyers, in particular, could increase their allocations to UK real estate now. The UK remains attractive for its stability; with global markets volatile (trade tensions, etc.), some wealthy investors will redirect funds into British property as a safe haven, now made even more appealing by lower financing costswillowprivatefinance.co.uk.

Indeed, we expect a boost in enquiries from overseas ultra-HNW clients looking to finance London prime property – a group very sensitive to interest rates and currency moves.

Willow’s advice:

HNW borrowers should approach this period with a strategic mindset.

If you have existing large loans, talk to us about how the rate cut might allow a restructuring of your debt. Perhaps you can negotiate a rate reduction with your private bank (some will adjust the margin if you ask, especially if you have a good relationship and the base rate has fallen).

Or it could be an opportunity to refinance a bridge or development loan into a longer-term facility at a lower cost. If you’ve been considering releasing equity for further investments or family planning (e.g. trust arrangements, gifting, etc.), the cost of doing so has just become slightly more favorable.

For those in the market for a new purchase or refinance, shop around among private banks and specialist lenders – competition is heating up. Don’t assume your usual bank is the best bet; we work with many niche lenders who are eager to lend to HNW clients under these improved conditions, sometimes with terms that might surprise you (such as interest-only mortgages with no fixed term, or ultra-long 10+ year fixed rates tailored for wealth preservation).

Our role is to package your unique financial situation (be it foreign income, complex assets, or corporate structures) and present it to lenders who “get it.” With rates on a downward path, we can often negotiate bespoke deals that weren’t conceivable when policy was tight.

In summary, the August rate cut is an inflection point for high-net-worth financing – a chance to secure cheaper money and leverage your wealth more efficiently. Just ensure that, as always, you’re not over-leveraging based on optimism.

We counsel our HNW clients to keep sensible buffers (e.g. liquid assets on hand or a bit of headroom in loan facilities) because, even though the trend is positive, the BoE is moving carefully. But overall, we’re optimistic that this environment will enable our clients to achieve their goals, whether that’s acquiring a new mansion, refinancing a large buy-to-let portfolio, or restructuring loans to improve cash flow. The tools and products are there, and getting better by the month.

Opportunities for Property Developers and Investors

Property developers are another group for whom the base rate cut can have a meaningful impact.

Development finance and bridging loans are typically more expensive than standard mortgages (often in the high single digits or low double digits in interest rate).

While these short-term loans don’t always move in lockstep with the base rate, the general downward trend reduces funding costs and can improve project viability. In fact, some development and bridging lenders do index their rates to base or LIBOR – for those, a 0.25% cut will directly lower the interest charged on drawn funds, which over a 12–18 month build can save a notable sum.

Even for lenders who price more discretely, the competitive pressure will likely push them to trim rates or fees to attract good projects now that money is cheaper for them to source. We’re already hearing of a few bridging lenders knocking 0.1–0.2% off their monthly rates compared to earlier in the year, and development loan margins coming down slightly as well.

Perhaps more crucial is the psychological and planning aspect. Developing property during a period of rising interest rates is daunting – uncertainty around exit costs and refinancing can stall projects. Now, with a clearer view that rates are stable or falling, developers can plan their finances with more certaintywillowprivatefinance.co.ukwillowprivatefinance.co.uk.

The BoE’s easing path gives confidence that by the time a project is completed in, say, 12–24 months, the market for selling or refinancing that development will be on firmer footing with lower interest rates. This predictability aids in budgeting and exit strategy.

For instance, when projecting the Gross Development Value and the buyers’ mortgage costs, a developer can be slightly more optimistic that potential purchasers will find mortgages affordable, supporting the target sale prices.

Or if the plan is to refinance onto an investment loan upon completion (e.g. keep a block of flats and let them out), the rental coverage might work better at a 5% mortgage rate than it would have at 6%. In short, some projects that didn’t pencil out at last year’s financing costs may now start to make financial sense again.

We also foresee lender appetite for development projects improving in a low-rate environment. When base rates were high, many development finance providers tightened their criteria – requiring more equity, pre-sales, or faster build timelines – to mitigate risk. As rates fall and the economy shows a bit more life, these lenders can afford to be a bit bolder.

We expect to see more competitive terms like higher Loan-to-Cost or Loan-to-GDV ratios creeping back. For example, where a lender might have capped at 60% Loan-to-GDV during the peak uncertainty, they might stretch to 65% now for experienced developers. Some lenders are already talking about bringing back mezzanine finance and interest-only bridge extensions, which essentially disappeared when money was dear.

Overall, the financing toolkit for developers is expanding again, which is great news if you have a viable project. (For a detailed look at how development funding has evolved this year, see our piece on development finance in 2025 – it outlines recent lending trends and what lenders are focusing on.)

Bridging finance is another aspect to touch on. In a fast-moving market, having access to quick bridge loans can be crucial – for instance, to snap up a discounted property or a piece of land when an opportunity arises. With rates falling, the cost of bridging to act quickly is a bit less prohibitive.

We often advise investors: if you can find a great deal on a property (perhaps a motivated seller situation or an auction purchase), don’t let slightly high short-term rates deter you if the long-term value is there. Now that short-term rates are easing, bridging becomes an even more useful tool to secure opportunities while they’re hotwillowprivatefinance.co.uk.

You can always refinance out of a bridge into a cheaper term mortgage once ready. The key is ensuring the numbers work and having an exit plan – something our team always stress-tests. The current environment improves those exit prospects, since mortgage refinance rates are coming down.

Willow’s advice:

For developers and property investors involved in projects, it’s time to re-engage with your finance plans. Dust off those projects you shelved due to financing costs – it may be worth running the figures again with updated interest assumptions.

If you were getting quotes of, say, 9% annual interest on a development loan before, see what quotes look like now – you might find offers in the 8% range, which could tip a marginal project into a feasible one.

Also, maintain close contact with brokers (hello!) and lenders about new programs. In an improving rate climate, lenders often roll out new products or pilot schemes to capture market sharewillowprivatefinance.co.uk.

For example, some banks might introduce special development loan funds for sustainable projects or revive 90% bridging loans for quick purchases – these things tend to pop up when optimism returns. You won’t know about them unless you’re plugged in.

We make it a point to keep our developer clients informed of any such shifts.

Moreover, update your contingency plans. Lower interest rates are helpful, but construction costs and timelines remain challenging in 2025. Take advantage of lower finance costs to possibly build in a bit more contingency budget or buffer; essentially, reallocate some savings into risk management. And, as always, plan your exit strategy carefully.

If you intend to sell, consider locking in sales (exchanging contracts) early if the market shows strength, or be prepared to hold and refinance if needed – fortunately, refinancing should be easier now. If you intend to hold the asset, talk to us about pre-arranging your take-out loan (buy-to-let or commercial mortgage) so that you’re not scrambling upon project completion.

The overarching sentiment for developers right now is one of “cautious opportunity.”

The rate cut is a tailwind that will help your numbers and lender mood, but it’s not carte blanche to go overleveraged. The BoE itself has signaled it will move carefully – if inflation flares up, they could pause cuts, which would temper some of these rosy scenarioswillowprivatefinance.co.uk.

So proceed, but with prudence. We’ll echo what we advise all sophisticated investors: have a buffer, and have multiple exit options. That said, it’s refreshing to finally report conditions moving in favour of borrowers. For many of our developer clients, this is the moment to get plans back on track, and we’re excited to help structure smarter funding deals in this more benign rate climate.

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