Mortgage Strategy asked a number of figures from across the industry whether a Bank of England cut in rates next week might soften the blow of a much-anticipated,hard-hitting Autumn Budget.

Marchwood IFA, director and mortgage broker James Gordon  

“It could, I suppose every little helps, but in reality I wouldn’t see another Base Rate cut causing a huge cut in the rates available to consumers, they are still way too far below where Base Rate is as to be sustainable. I’m not sure where the floor for rates is to be honest.

“But any reduction is positive – for borrowers – so would help in terms of positivity in the market, if not saving people hundreds and hundreds of pounds a month.

Just Mortgages, head of mortgages and protection Ben Allkins

“We would certainly like to see further movement from the Bank of England on the base rate and I know many potential borrowers feel the same. Given all the talk of a black hole in the nation’s coffers, the expectation is that Labour’s first budget will be a painful one – especially if tax rises do form a key part of plans.

“While a base rate cut would help to ease that pain somewhat – and would certainly help support the growing momentum we’re seeing on the ground – it’s unlikely a further cut will come in September. Unless we see something surprising in next week’s inflation figures, markets are almost unanimously expecting a pause in September, with the next cut likely coming in November.

Nick Hale, Chief Executive Officer at Movera,

“While the potential for a further interest rate cut could provide some short-term relief, particularly for homebuyers feeling the pressure of increased borrowing costs, it’s unlikely to fully offset the challenges posed by the Reeves budget.

“For the housing market, especially in the conveyancing sector, any rate adjustment would need to be paired with wider fiscal measures to truly soften the impact.

“Ultimately, what’s needed is a broader, cohesive approach—one that not only addresses financing but also simplifies processes and reduces the transactional burden for those moving home. The budget should focus on creating stability and predictability, which would go a long way in sustaining buyer confidence and maintaining activity in the housing market.”

Kerr & Watson mortgage broker and director Stephen Kerr

“In our industry we’ve seen positive trends recently, with mortgage approvals reaching their high levels again and a gradual improvement in affordability. Lower rates have certainly been a welcome improvement, especially for first-time buyers and those facing affordability challenges, with brokers of course being happy to receive them.However, Rachel Reeves’ upcoming budget presents some anxiety and uncertainty.

“From my view, an interest rate cut could soften some of the pressures. For example, it could help keep momentum in mortgage approvals and housing transactions. However, if the budget results in large tax hikes or further cuts that affect household incomes, even lower rates may not be enough to create an optimistic outlook.”

Access Financial Services chief executive Karl Wilkinson

“This is a critical time for the mortgage industry. Reeves’ Budget will have significant impact on consumer confidence, and whether now is the right time to buy, move or let.

“If the Monetary Policy Committee votes for a second cut in the Base Rate, this will absolutely help a good chunk of people decide to keep or get active in the market. With the US Federal Reserve expected to lower interest rates by 25 basis points next week and twice again before the end of the year, it is a possibility the UK could follow suit, as often happens.

“However, there is still concern on the Policy Committee that services inflation remain high, so I wouldn’t be surprised if they decided to stick at 5%.”

Phoebus chief sales and marketing director Richard Pike

“It’s highly likely that interest rates won’t be cut until a 25bps cut in November and maybe again in December. So, Reeves’ news in October will hit hard if it is as expected. And, although rate cuts would ‘soften the blow’, a month or two’s worth of fallout as the market considers and reacts to the uncertainty she’ll create, could put some business on the back foot again”.