Liverpool homeowners could see a drop in their monthly mortgage repayments if the Bank of England goes ahead with interest rate cuts today (14 July).

Amid speculation that the bank’s governor, Mark Carney could reduce the 0.5% base rate down to 0.25%, local experts have suggested the measure following the Brexit vote would be good news for borrowers with ‘tracker’ mortgages.

Mike Carter, head of property at Paul Crowley & Co solicitors, says: “If the Bank of England announces it is to slash interest rates down to 0.25% today there will be a significant impact for those looking to get on to the property ladder and those with mortgages.

“This will be especially true for those with ‘tracker’ mortgages, where the borrower’s rate will move in line with the base rate, who would immediately expect to enjoy lower monthly mortgage repayments, while those with a fixed rate will have to wait to see any benefit should they re-mortgage in the future.”

Referring to ‘tracker’ loan repayments, Richard Bridge, senior financial planning consultant at John Kerr Chartered Accountants, adds: “For the average UK borrower this will mean a saving of around £15 per month if the cut is 25 basis points to bring the base rate down to 0.25%.”

Meanwhile Kevin Ross (pictured), director at Brown Turner Ross solicitors and property specialists, suggests potential buyers looking to secure mortgages could see some “very attractive offers becoming available”.

Kevin also says the post-Brexit predictions of house prices dropping nationally by 10% and buyers pulling out of deals hasn’t been his firm’s experience so far, and says: “Overall we feel the shortened process to appoint a new Prime Minister and an interest rate cut may stabilise the market, with nervous buyers happier about going ahead and there being greater confidence generally.”

Looking ahead, Richard Bridge also adds: “Going forward a modest continuation of house-price inflation in Liverpool is perhaps more likely, and a rate cut – if it is to be – ought only to provide a following wind by loosening credit for buyers and thus stoking demand.”

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