Lenders are set to cut rates on mortgages after turmoil from US President Donald Trump’s tariff policy raised expectations that UK interest rates could be cut further this year.
TSB Bank said it will reduce some two-year fixed rate mortgages by up to 0.25 percentage points on Wednesday, following MPowered Mortgages which trimmed rates on across a number of its deals.
Financial markets and economists are predicting that the Bank of England will cut interest rates by more than expected this year to avoid an economic downturn.
The interest rate is 4.5% and the Bank was forecast to reduce it twice this year but the uncertainty created by US tariffs has changed the outlook to three cuts to 3.75%.
The average two-year and five-year fixed rate were unchanged on Tuesday, at 5.32% and 5.17% respectively, according to financial information company Moneyfacts.
Though spokesperson Rachel Springall said: “Mortgage rates are expected to come down in the coming weeks.”
