Major lenders are reducing mortgage rates, with Nationwide cutting rates on its fixed mortgage products by up to 0.55 percentage points.
TSB has announced reductions of up to 0.4 percentage points, with HSBC also expected to cut rates today.
Henry Jordan, Director of Home at Nationwide Building Society, said: “These latest changes build on the reductions we made last week for existing customers.
“With swap rates having fallen from their early July peak and stabilised somewhat, we are now able to reduce rates for new customers.”
Liam Halligan said he thought the mortgage rate reductions were 'really significant'
GB NEWS
Rates on the building society’s range of two year tracker mortgages will increase by 0.25 percentage points in line with the product terms given the recent base rate rise of 25 basis points.
GB News’ Economics and Business Editor, Liam Halligan, said: “There’s a growing sense that inflation is coming down and that means expectations of where interest rates are going to peak are coming down.
“Even though rates may go up next month, I think they probably will, mortgage rates are coming down.”
Markets are now predicting the Bank of England base rate, which is currently 5.25 per cent, to peak at 5.75 per cent rather than 6.75 per cent.
UK inflation fell further than expected in June to 7.9 per cent, down from 8.7 per cent in May.
The average two-year mortgage fix is currently 6.84 per cent.
Mr Halligan told GB News viewers he thought today’s reductions were “really significant”.
He added: “Almost no-one thinks that the Bank of England isn’t going to put interest rates up a little bit more, but what those mortgage companies are saying, is that over a two-year period they think rates are going to be coming down and coming down considerably.
LATEST DEVELOPMENTS:
Nationwide has reduced mortgage rates from today
PA
The Bank of England increased the base rate by 0.25 percentage points last Thursday to 5.25 per cent.
Laura Suter, head of personal finance at AJ Bell, suggested, if peak rates are here, mortgage holders could see if they can get a cheaper deal.
She said: “You can lock in a new mortgage rate six months ahead of your current fixed-rate deal expiring, and many homeowners will have done this already.
“If you’re in that camp you should revisit the rate you’ve secured and see if you can get something cheaper now.
“It might not be a huge saving in monetary terms, but even a small reduction in your monthly repayments can make a big difference over the term of your fix. Just make sure you won’t pay any costs or penalties for ditching the deal you’ve already agreed.”
