Although spring tends to bring more activity in the housing market, this may have been dampened as potential buyers wait for more political certainty.
Borrowers will also be watching for whether the Bank of England’s Monetary Policy Committee (MPC), which sets interest rates, opts for a cut at its next meeting on 1 August.
At the most recent meeting last week, there was a significant change in tone indicating a majority could vote for one.
Optimism about such an outcome may have led to the latest moves by major lenders. The banks may also be jostling for custom.
Andrew Montlake, from mortgage broker Coreco, said: “Lenders will be keen to kickstart a market lethargic from the election, hot weather and football.
“The country desperately needs the boost of a cut to relieve some of the financial pressures that have held back the economy and put borrowers under immense pressure.”
However, he said positive news about falling inflation may only be temporary, and could lead to more caution from the Bank.
Michelle Lawson, from Lawson Financial, said borrowers were “beleaguered” but more lenders could cut rates in the coming days.
Separate figures published on Tuesday by UK Finance, which represents lenders, showed a further drop in the number of people paying only the interest on their home loan, despite the tough current conditions for borrowers.
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