Mortgage rates set to drop after tariff turmoil

Some lenders have been determined to cut the rates of UK this year to cut rates on hostage after turmoil from US President Donald Trump’s tariff policy.

TSB Bank said it would reduce a few two-year fixed rate mortgage by 0.25 percent on Wednesday, after the mpowered hostage, which prunctions the rates in several deals.

Financial markets and economists are predicting that the Bank of England will cut more interest rates than expected this year to avoid economic downturn.

The main rate of the bank is 4.5%. This year it was estimated to reduce it twice, but the uncertainty created by the US tariff has turned the hope into three cuts.

Sarah Coles, head of individual finance at Hargravs Lansdowne, said, “Bank of England, and central banks from other countries,” to support development will actually cut interest rates as much as possible “.

He said, “And of course hostage companies start to cost price and we have already started declining the mortgage rates and we should see a lot in the coming days.”

According to financial information company Moneyfacts, the average mortgage rates at fixed deals in two years and five years were unchanged on Tuesday, respectively at 5.32% and 5.17%, although it was said that the rates were expected to decrease in the coming weeks.

The mortgage brokers told the BBC that if the so -called swap rates, which are used for lender price loan, they live because they could reduce some hostage rates by 3.79% in the coming weeks.

However, the lowest rate deals will not be available to all borrowers, especially for buyers, and can come up with a heavy duty.

And in the mid -20121, the owners of many households coming from the fixed deals signed before the increase in interest rates starts will still find themselves in the atmosphere of high mortgage rates.

According to Bank of England, one third of the houses want to renew the next year or two.