{"id":4909,"date":"2025-04-08T10:13:16","date_gmt":"2025-04-08T10:13:16","guid":{"rendered":"https:\/\/www.europesays.com\/uk\/4909\/"},"modified":"2025-04-08T10:13:16","modified_gmt":"2025-04-08T10:13:16","slug":"first-lender-cuts-mortgage-rates-as-tariffs-set-to-bring-down-interest-rates","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/uk\/4909\/","title":{"rendered":"First lender cuts mortgage rates as tariffs set to bring down interest rates"},"content":{"rendered":"<ul class=\"mol-bullets-with-font\">\n<li class=\"\"><strong>The Bank of England is now predicted to drop rates three more times in 2025\u00a0<\/strong><\/li>\n<\/ul>\n<p class=\"author-section byline-plain\">By <a href=\"https:\/\/www.thisismoney.co.uk\/profile-1821\/ed-magnus.html\" class=\"author\" target=\"_blank\" rel=\"noopener\">ED MAGNUS<\/a> <a rel=\"nofollow noreferrer noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/intent\/follow?screen_name=EdMagnus5&amp;tw_p=followbutton\" class=\"twitter-follow-author\"><\/a> <\/p>\n<p class=\"byline-section\"> Updated:  09:56 EDT, 7 April 2025   <\/p>\n<p class=\"mol-para-with-font\">Homeowners are starting to see\u00a0<a style=\"font-weight: bold;\" target=\"_self\" href=\"https:\/\/www.thisismoney.co.uk\/money\/mortgageshome\/article-1687576\/What-mortgage-rates.html\" id=\"mol-faec89b0-13a6-11f0-9a74-67fc6eb36606\" class=\"\" rel=\"noopener\">mortgage rates<\/a>\u00a0fall in the aftermath of Donald Trump&#8217;s tariff announcements.<\/p>\n<p class=\"mol-para-with-font\">Financial markets are now pricing in greater chances of economic recession with interest rate cuts now forecast to be cut faster than before.<\/p>\n<p class=\"mol-para-with-font\">There is now an expectation that the Bank of England will cut interest rates three more times in 2025. They are predicted to end the year at 3.75 per cent, down from 4.5 per cent now.<\/p>\n<p class=\"mol-para-with-font\">The newfound\u00a0expectation that <a style=\"font-weight: bold;\" target=\"_self\" href=\"https:\/\/www.thisismoney.co.uk\/money\/mortgageshome\/article-11885727\/When-rates-start-fall-Base-rate-forecasts.html\" id=\"mol-faec62a0-13a6-11f0-9a74-67fc6eb36606\" class=\"\" rel=\"noopener\">interest rates<\/a> will fall faster is feeding through into sonia swaps, an inter-bank lending rate which forecasts where mortgage rates will be in two or five years. Lenders use this to determine fixed-rate mortgage pricing.<\/p>\n<p class=\"mol-para-with-font\">Since the tariffs were announced, sonia swaps have been falling at some speed.<\/p>\n<p>   <img decoding=\"async\" id=\"i-14e4b5a17c6778f2\" src=\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/04\/97002955-14579603-Sonia_swaps_falling_Fixed_rate_mortgage_pricing_is_largely_based-a-2_1744028760838.jpeg\" height=\"373\" width=\"633\" alt=\"Sonia swaps falling: Fixed-rate mortgage pricing is largely based on Sonia swap rates - the inter-bank lending rate, based on future interest rate expectations\" class=\"blkBorder img-share\" style=\"max-width:100%\" loading=\"lazy\" \/>   <\/p>\n<p class=\"imageCaption\">Sonia swaps falling: Fixed-rate mortgage pricing is largely based on Sonia swap rates &#8211; the inter-bank lending rate, based on future interest rate expectations<\/p>\n<p class=\"mol-para-with-font\">Five-year swaps were at 3.63 per cent and two-year swaps were at 3.66 per cent at the start of today, down from 3.97 per cent and 4.02 per cent\u00a0respectively on the day of Trump&#8217;s\u00a0announcement last week.<\/p>\n<p class=\"mol-para-with-font\">The expectation is that fixed mortgage rates could now follow suit if swaps remain where they are.<\/p>\n<p class=\"mol-para-with-font\">One mortgage lender to already respond to the change in sonia swaps is MPowered Mortgages.<\/p>\n<p class=\"mol-para-with-font\">It is cutting rates on its full range of fixed mortgage rates in response to the sharp fall in swap rates following President Trump&#8217;s tariff announcement. The rate cuts will be effective from 9am tomorrow.<\/p>\n<p class=\"mol-para-with-font\">Its lowest two-year fix will now start from 4.05 per cent with a \u00a3999 fee. These will be available to someone buying with at least a 40 per cent deposit.<\/p>\n<p class=\"mol-para-with-font\">Its lowest five-year fixed rates will now start at 4.14 per cent with a \u00a3999 fee.<\/p>\n<p class=\"mol-para-with-font\">Stuart Cheetham, chief executive of MPowered Mortgages said: &#8216;Since Trump announced the &#8220;Liberation Day&#8221; tariffs we have seen a sharp fall in the swap rates which has enabled us to reduce our fixed rate mortgage rates.\u00a0<\/p>\n<p class=\"mol-para-with-font\">&#8216;Whilst these tariffs could have a detrimental impact on the UK economy with increased prices putting extra strain on UK households, there is a silver lining for mortgage borrowers who will see rates come down over the coming week.\u00a0<\/p>\n<p class=\"mol-para-with-font\">&#8216;As always, borrowers should seek independent financial advice before deciding on a mortgage deal.&#8217;<\/p>\n<p class=\"mol-para-with-font\">Mortgage brokers are now expecting more lenders to follow in what could see a wave of cuts over the coming weeks.\u00a0<\/p>\n<p class=\"mol-para-with-font\">Pete Mugleston, managing director at Online Mortgage Advisor told the news agency, Newspage: &#8216;With sonia swaps continuing to slide, we\u2019re getting closer to seeing two and three-year fixed rates starting below 4 per cent.\u00a0<\/p>\n<p class=\"mol-para-with-font\">&#8216;If the current trends hold, it wouldn\u2019t be surprising to see lenders break that barrier in the coming weeks.\u00a0<\/p>\n<p class=\"mol-para-with-font\">&#8216;However, many are holding back, likely waiting for sustained swap rate stability before repricing aggressively.&#8217;<\/p>\n<p class=\"mol-para-with-font\">The cheapest five-year fix is currently 4.07 per cent and the cheapest two-year fix is 4.05 per cent.\u00a0<\/p>\n<p class=\"mol-para-with-font\">Riz Malik, independent financial adviser at R3 Wealth added: &#8216;We could see some really big cuts in fixed rate mortgage pricing this week.\u00a0<\/p>\n<p class=\"mol-para-with-font\">&#8216;With <a style=\"font-weight: bold;\" target=\"_self\" class=\"\" href=\"https:\/\/www.thisismoney.co.uk\/money\/mortgageshome\/article-14578779\/House-prices-FELL-March-higher-stamp-duty-costs-took-hold.html\" rel=\"noopener\">house prices dipping according to Halifax<\/a> and millions set to remortgage, a rate cut could spark much needed momentum in a hesitant market.\u00a0<\/p>\n<p class=\"mol-para-with-font\">&#8216;It will take a brave lender to make the first big move on rates, but once one does, others may quickly follow.&#8217;<\/p>\n<p><a href=\"https:\/\/www.thisismoney.co.uk\/money\/mortgageshome\/fb-8946397\/Best-mortgage-rates-Moneys-help.html\" target=\"_blank\" rel=\"noopener\">Best mortgage rates and how to find them<\/a> <\/p>\n<p class=\"mol-para-with-font\">Mortgage rates have risen substantially over recent years, meaning that those remortgaging or buying a home face higher costs.<\/p>\n<p class=\"mol-para-with-font\">That makes it even more important to search out the best possible rate for you and get good mortgage advice.\u00a0<\/p>\n<p class=\"mol-para-with-font\">Quick mortgage finder links with This is Money&#8217;s partner L&amp;C<\/p>\n<p class=\"mol-para-with-font\"><a style=\"font-weight: bold;\" class=\"\" rel=\"nofollow noreferrer noopener\" target=\"_blank\" href=\"https:\/\/www.landc.co.uk\/destination\/partners\/thisismoney-cb2cta1\">&gt; Mortgage rates calculator<\/a><\/p>\n<p class=\"mol-para-with-font\"><a style=\"font-weight: bold;\" class=\"\" rel=\"nofollow noreferrer noopener\" target=\"_blank\" href=\"https:\/\/www.landc.co.uk\/destination\/partners\/thisismoney-cb2cta2\">&gt; Find the right mortgage for you\u00a0<\/a><\/p>\n<p class=\"mol-para-with-font\">To help our readers find the best mortgage, This is Money has partnered with the UK&#8217;s leading fee-free broker L&amp;C.<\/p>\n<p class=\"mol-para-with-font\"><a style=\"font-weight: bold;\" class=\"\" rel=\"nofollow noreferrer noopener\" target=\"_blank\" href=\"https:\/\/www.landc.co.uk\/destination\/partners\/thisismoney-cb2cta1\">This is Money and L&amp;C&#8217;s\u00a0mortgage calculator<\/a>\u00a0can let you compare deals to see which ones suit your home&#8217;s value and level of deposit.<\/p>\n<p class=\"mol-para-with-font\">You can compare fixed rate lengths, from two-year fixes, to five-year fixes and ten-year fixes.<\/p>\n<p class=\"mol-para-with-font\">If you\u2019re ready to find your next mortgage, why not use This is Money and L&amp;C\u2019s online Mortgage Finder. It will search 1,000\u2019s of deals from more than 90 different lenders to discover the best deal for you.<\/p>\n<p class=\"mol-para-with-font\"><a style=\"font-weight: bold;\" class=\"\" rel=\"nofollow noreferrer noopener\" target=\"_blank\" href=\"https:\/\/www.landc.co.uk\/destination\/partners\/thisismoney-cb2cta2\">&gt; Find your best mortgage deal with This is Money and L&amp;C<\/a>\u00a0<\/p>\n<p class=\"mol-para-with-font\">Mortgage service provided by London &amp; Country Mortgages (L&amp;C), which is authorised and regulated by the Financial Conduct Authority (registered number: 143002). The FCA does not regulate most Buy to Let mortgages. Your home or property may be repossessed if you do not keep up repayments on your mortgage.\u00a0<\/p>\n<p>                    Share or comment on this article:<br \/>\n                        First lender cuts mortgage rates as tariffs set to bring down interest rates<\/p>\n<p class=\"mol-style-italic byline-section justify\">Some links in this article may be affiliate links. If you click on them we may earn a small commission. That helps us fund This Is Money, and keep it free to use. We do not write articles to promote products. We do not allow any commercial relationship to affect our editorial independence.<\/p>\n<p>        <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n","protected":false},"excerpt":{"rendered":"The Bank of England is now predicted to drop rates three more times in 2025\u00a0 By ED MAGNUS&hellip;\n","protected":false},"author":2,"featured_media":4910,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[6],"tags":[51,1232,2241,1283,16,15],"class_list":{"0":"post-4909","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business","8":"tag-business","9":"tag-money","10":"tag-moneymortgageshome","11":"tag-thisismoney","12":"tag-uk","13":"tag-united-kingdom"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@uk\/114301816281045324","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/4909","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/comments?post=4909"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/posts\/4909\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media\/4910"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/media?parent=4909"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/categories?post=4909"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/uk\/wp-json\/wp\/v2\/tags?post=4909"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}