Nationwide and Barclays cut mortgage rates - how much further they could fall

Two major lenders have cut their mortgage rates as experts predict they will continue to come down over the next few weeks.

Nationwide and Barclays both made cuts to their rates this week, alongside smaller lenders, as competition in the market has begun to build back up.

It follows the Bank of England’s (BoE) decision to hold interest rates at 3.75 per cent for the fourth time in a row. The BoE’s Monetary Policy Committee voted 7-2 in favour of holding rates today.

That marks a significant turnaround from when the war in Iran first broke out, at which point economists predicted the base rate would increase back to 4 per cent by the end of the year, with mortgage rates expected to rise as a result.

Although there was an initial spike, rates have since come down as lower inflation and an interest rate hold have increased lender and consumer confidence. Industry experts add that homebuyers and sellers grew tired of holding off on making a decision.