Britain's FTSE 100 climbs to 11-month high with BoE set to cut rates

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* FTSE 100 at 11-month highs

* Housebuilders rise with BoE (Shenzhen: 200725.SZ - news) set to cut rates

* Miners rise as JP Morgan upgrades Anglo American (LSE: AAL.L - news)

* FTSE 100 still below pre-Brexit level in U.S (Other OTC: UBGXF - news) . dollar terms

By Sudip Kar-Gupta

LONDON, July 14 (Reuters) - Britain's top shares index rose on Thursday to an 11-month high, boosted by expectations of an interest rate cut from the Bank of England that lifted housebuilding and property stocks.

The blue-chip FTSE 100 index rose 1 percent to 6,738.75 points while the FTSE 250 mid-cap index, whose companies are more exposed to the domestic economy, advanced 0.6 percent.

The Bank of England is expected to halve its benchmark interest rate to a record low of 0.25 percent, the first cut in more than seven years, as it tries to cushion the economy from the shock late June "Brexit" vote to pull Britain out of the European Union.

Lower interest rates typically boost stock markets, as they dent returns on bonds and cash and can reduce borrowing costs for companies.

The prospect of lower rates lifted housebuilding and property stocks, which had been among the hardest hit after the Brexit vote. Lower rates often encourage consumers to take out loans to buy homes and property.

Barratt Developments (LSE: BDEV.L - news) rose 3 percent while Berkeley Group rose 2 percent. Rival Persimmon also rose 1.8 percent to 1,581 pence.

"We've been trading in and out of the housebuilders, and have been buying some following their recent weakness. We bought into Persimmon (Other OTC: PSMMF - news) around 12-13 pounds and then sold out at 15 pounds," said Ryan Mitchell, senior investment manager at Logic Investments.

Mining stocks also rose on the back of firmer metals prices, with Anglo American up 3.9 percent as JP Morgan upgraded the company to "overweight".

"H1 results are likely to be a positive catalyst for Rio, Anglo and Glencore (Xetra: A1JAGV - news) in our view, and resilient prices have de-risked balance sheets, offering a platform for Anglo and Glencore to execute additional disposals," said JP Morgan's analysts.

The FTSE 100 is up around 8 percent so far in 2016, although a slump in sterling following the Brexit vote has meant that the FTSE 100 remains below its pre-Brexit levels in U.S. dollar terms. (Reporting by Sudip Kar-Gupta; Editing by Tom Heneghan)