, Accord Mortgages and Saffron Building Society have also cut rates this week. However, banks have warned that borrowers should be prepared for a new normal of higher mortgage rates as there is no 'silver bullet' to bring down prices. Roland McCormack, director of mortgages at TSB, expected rates to remain at today's levels for the rest of the year, before settling between 4pc and 6pc in the medium term. Others expect similar market conditions. Zoopla's executive director, Richard Donnell, has predicted mortgage rates below 5pc to make a return to the market later this year, before they settle between 4pc and 5pc.){kind=link}
Reductions come despite heightened expectation of further tightening from Threadneedle Street
Major lenders including Barclays, NatWest and Coventry Building Society have slashed the interest rates on their mortgages ahead of the publication of official inflation figures on Wednesday.
All six of Britain’s biggest mortgage lenders, including Lloyds Banking Group and Nationwide, have reduced their rates in the past week despite the expectation of further Bank Rate rises.
Markets now expect the Bank of England’s official interest rate to peak at 6pc next spring.
The Bank Rate is at a 15-year high of 5.25pc after a 0.25 percentage point rise at the start of the month.