Homeowners and prospective buyers could soon see lower interest rates on fixed rate home loans as financial markets signal growing confidence in a series of Bank of England cuts.
So-called SONIA swap rates, which set the figure at which banks borrow from one another, have been falling in recent days and these are expected to bring reductions on fixed rate deals.
A number of leading lenders, including the Halifax and Barclays, have already introduced reductions recently and there are expectations of more to come.
Riz Malik, Independent Financial Adviser at R3 Wealth, said: “With SONIA swap rates continuing to decline, we may see even deeper reductions in fixed-rate pricing. This will be welcome news for households looking to buy or remortgage.”
Emma Jones, Managing Director at Whenthebanksaysno.co.uk, told Newspage: “The downward spiral in swaps will likely translate into improved mortgagepricing in the days and weeks ahead. February is already looking far more positive than the …