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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. <\/p>\n
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.<\/p>\n
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. <\/p>\n
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%.<\/p>\n<\/div>\n
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.<\/p>\n
Though spokesperson Rachel Springall said: “Mortgage rates are expected to come down in the coming weeks.”<\/p>\n<\/div>\n