Homebuyers and borrowers could be set to benefit from a mortgage price war, a property expert claims.
Jonathan Rolande, from the National Association of Property Buyers, has suggested a price war is likely to break out between the banks as competition increases to win business.
Major lenders including HSBC, Nationwide and TSB have all reduced their pricing in recent weeks as swap rates ease and despite expectation that the Bank of England will push the cost of borrowing up towards 6% next month.
Rolande said: “We are likely to see banks become increasingly competitive to win business and that means cutting rates.
“However a further rate increase looks increasingly likely thanks to higher than expected wage inflation that may drive prices up just as consumer spending seems to be getting back under control.
“As banks look to cut rates they are also increasing them for savers, albeit slower than many would expect.
“The competition is very much on and all the banks are racing to try and win business. It’s been a very, very difficult year for mortgage holders so far. But this could be the chink of light we’ve all been waiting for.”