Inflation and mortgage rates

Mortgage rates will react positively to this news, especially as growth looks weak in the market. Buyers have been disappearing since the war in Iran started so steady inflation in the UK along with an end to the conflict, should bring begin to even out supply and demand in the housing market

Great news on inflation. Several lenders have cut rates this week, with Santander announcing further reductions to come in effect from tomorrow, including on tracker products. Even if a Bank of England rate cut isn't around the corner, lower tracker margins are helping deliver more competitive options for borrowers.

It’s good news that food and housing costs are easing, but the Bank of England will still be watching stubborn services inflation carefully. For mortgage borrowers, the direction of travel remains downward, but expectations should be realistic, we’re talking about a slow easing in mortgage rates rather than a sharp drop.