Mortgage providers to cut interest rates - papers 16th May

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MORTGAGE LENDERS are priming themselves to cut loan rates this week on the prospect of a future rate cut, saving homeowners with a £150,000 mortgage more than £400 a year, says the Times.

Lenders are expected to cut their two-year fixed-rate deals from 4.7% to 4.3% “within days” as mortgage providers will seek to realign their discounted and capped rate deals once one of two firms make the move. Prior to last week, it was anticipated lenders would soon face a rise on the Bank of England base rate, but poor news about retail spending suggests will be cut now rather than later in the year. Newcastle Building Society was the first to cut its two-year fixed-rate loan rate from 4.67% to 4.49% late last week but other firms are expected to push rates down further. MIDDLE ...

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