Tue, 08 Apr 2025

Tue, 08 Apr 2025 Mortgage rates set to drop after tariff turmoil

Interest rates are forecast to fall further as Donald Trump's trade taxes fuel economic uncertainty.

* Some lenders are set to cut mortgage rates in response to expectations that UK interest rates will be cut further this year.
* TSB Bank and MPowered Mortgages have already trimmed rates on some of their deals.
* Financial markets and economists predict that the Bank of England will cut interest rates by more than expected, from 4.5%, to avoid an economic downturn.
* The uncertainty caused by US tariffs has increased expectations of three rate cuts this year, up from two previously forecast.
* Mortgage companies are pricing in these rate cuts, leading to falls in mortgage rates, with some predicting rates could fall as low as 3.79%.
* However, the lowest rate deals will not be available to all borrowers, particularly first-time buyers, and may come with a hefty fee.
* Many homeowners who are coming off fixed-rate deals will still find themselves in a higher mortgage rate environment, with 1.3m existing deals due to end between April and December.
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