The Bank of England has announced a welcome cut to interest rates today, bringing the base rate down from 4% to 3.75% – its lowest level in nearly three years. This pre-Christmas announcement from the Monetary Policy Committee provides some much-needed relief for borrowers and positive news for anyone looking to buy or sell property in the Wigan area.
Why This Matters for Local Buyers and Sellers
Dropping below the psychologically significant 4% threshold is a confidence boost for the housing market after what’s been a cautious few months following the Budget announcement. For those of you who’ve been sitting on the fence about making a move, this rate cut could be the nudge you need.
The Bank now expects inflation to fall closer to its 2% target in the spring or summer of next year – much sooner than previously anticipated. Combined with yesterday’s better-than-expected inflation figure of 3.2%, this creates a much more positive outlook for 2026.
What This Means for Your Mortgage
For those currently on tracker mortgages, this cut could represent savings of around £150 per month compared to rates at the start of 2025. And if you’re considering a new mortgage deal, lenders have already been trimming rates in anticipation of today’s announcement, with more competitive products expected in the New Year.
Industry experts are predicting that we could see two-year fixed rates drop below 3% by spring, as lenders compete for business with new lending targets in place. January typically brings a fresh round of competitive mortgage products as lenders kick off the year.
The Wigan Property Market Outlook
Here at Alan Batt Sales & Lettings, we’ve noticed that many of our clients have been taking a “wait and see” approach in recent months. However, since the Budget proved less challenging than anticipated, we’re seeing attitudes shift from “why?” to “why not?” when it comes to making a move.
The good news is that the local property market has remained relatively resilient throughout 2025. With interest rates now heading in the right direction and mortgage affordability improving, we expect to see renewed activity as we head into 2026. January is traditionally one of the busiest periods in the property calendar, driven by “new year resolution” energy, and this rate cut should support that momentum.
Looking Ahead to 2026
While we’re not expecting dramatic changes overnight, the conditions are falling into place for a gradual improvement in the Wigan property market. House price growth is expected to remain modest – in low single digits – but the combination of lower interest rates, easing inflation, and improved buyer confidence creates a solid foundation for the year ahead.
If you’ve been thinking about buying or selling in Wigan, Standish, Shevington, or the surrounding areas, now could be an excellent time to start planning your move. The spring selling season traditionally kicks off in earnest from February onwards, and getting ahead of the curve could work in your favour.
Need Advice on Your Next Move?
Whether you’re a first-time buyer wondering how these rate cuts affect your mortgage options, or you’re looking to sell and want to know what this means for local property values, our team is here to help.
Get in touch with Alan Batt Sales & Lettings to discuss how today’s interest rate announcement could benefit your property plans in 2026.