Why today’s inflation news could be good news for homeowners

• 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.

IN FULL

Inflation relief could ‘trigger a mortgage price war’ as interest rates predicted to fall