Lenders should reduce mortgage rates after US President Donald Trump’s pricing policy has increased expectations that British interest rates may be reduced this year.
TSB Bank said it would reduce some 0.25 percentage points for two years of two years, following mortgage loans that have reduced rates on a number of its transactions.
The financial markets and economists provide that the Bank of England will reduce more than expected interest rates this year to avoid an economic slowdown.
The interest rate is 4.5% and the bank was to reduce it twice this year, but the uncertainty created by American prices changed the prospects with three drops to 3.75%.
The average fixed rate of two years and five years was unchanged Tuesday, at 5.32% and 5.17% respectively, according to the financial information company Moneyfacts.
Although spokesperson Rachel Springall said: “Mortgage rates should be down in the coming weeks.”
