Price cuts on fixed-rate deals expected as hopes grows of interest rates peak
Sub-5pc mortgage deals will be on the market within weeks as hopes grow that interest rates are nearing their peak, mortgage brokers say.
Falling expectations for future borrowing costs mean home buyers may be able to get five-year fixes at 4.5pc by the end of October, as more and more lenders announce rate cuts.
The Bank of England is poised to announce what is expected to be its 15th consecutive interest rate rise on September 21, bringing the Bank Rate up to 5.5pc, up from 0.1pc at the end of 2021.
But increasing signs that the labour market is turning, coupled with weaker than expected July GDP data, mean that markets now expect this to be the peak in rates.