- Homeowners could see lower mortgage rates after inflation unexpectedly held at 2.8 per cent.
- The stable inflation figure reduces expectations that the Bank of England will increase its base interest rate.
- This shift is anticipated to drive down swap rates, which lenders use to price mortgage products, leading to cheaper borrowing costs.
- Experts predict a potential 'price war' among mortgage lenders, aiming to attract customers, especially the 1.8 million homeowners due to remortgage soon.
- Some analysts suggest the Bank of England's next move could even be a rate cut, marking a significant change from earlier forecasts.
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