Good news for anyone looking to buy a house – mortgage rates could be about to fall! The big boss of the Bank of England has hinted that interest rates could be cut even further.

Andrew Bailey, the Governor of the Bank of England, has suggested that the Bank could be “a bit more aggressive” in cutting rates. This follows the Bank’s decision to reduce the base rate from 5.25% to 5% last month – the first cut in over four years.

Why are interest rates so important for house prices?

Interest rates are a big deal for anyone with a mortgage, or thinking of getting one. When interest rates are high, mortgages become more expensive, meaning buyers have less to spend on a property. This can lead to house prices falling.

What happens next?

The Bank of England has two more meetings this year to decide on interest rates, in November and December. Many experts reckon a rate cut is coming in November, and Bailey’s comments have fuelled speculation that rates could be slashed again in December. This would take the base rate down to 4.5% – great news for buyers who could bag a cheaper mortgage deal!

Even before Mr Bailey’s comments, 80% of economists surveyed by Reuters (that’s 49 out of 65!) predicted a rate cut before the end of the year. With the Bank of England seemingly changing course, estate agents across the country are already reporting renewed interest from buyers.

Could this be the start of a brighter future for the property market? We’ll have to wait and see, but things are certainly looking up!