Wed, 09 Apr 2025

Wed, 09 Apr 2025 UK mortgage lenders cut rates after Trump tariffs

Lenders lower mortgage costs as experts forecast interest rates will be cut by more than expected.
UK mortgage lenders are reducing interest rates in response to expected Bank of England rate cuts, amid concerns over global economic instability triggered by US tariffs. Coventry Building Society has become the largest provider to offer a two-year fixed-rate mortgage below 4%, with other lenders such as Clydesdale Bank and Newcastle Building Society also cutting their rates. According to Moneyfacts, the average two-year fixed mortgage rate has fallen to 5.3% and the five-year fix is now at 5.15%. Coventry's new deal offers a 3.89% interest rate for borrowers with a 65% loan-to-value until October 2027, but comes with a £999 fee. Other lenders such as TSB, Metro, and Bank of Ireland have also cut rates in recent days. Brokers expect further falls in the coming days, particularly from the "Big Six" lenders which have so far held off on making cuts. Central banks typically lower interest rates to stimulate spending during economic downturns. Economists now predict four Bank of England rate cuts over the next 12 months, up from an initial two.
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