Inflation relief could ‘trigger a mortgage price war’ as interest rates predicted to fall (opens original article in a new tab)

Inflation below expectations may lead to lower interest rates and mortgage price competition as the BoE considers rate cuts.

• Inflation held at 2.8% below expectations, prompting predictions of lower interest rates
• Mortgage lenders may reduce rates, potentially triggering a price war for borrowers
• Swap rates are expected to decline as expectations of BoE rate cuts increase
• Some lenders have already reduced mortgage rates, including Santander with tracker products
• BoE may hold or cut rates if inflation remains stable and oil prices fall
• Market forecasts for rate hikes have decreased from two to one and a half