Lenders could lower mortgage rates if the expected fall in inflation is announced today.

The Bank of England’s announcement is poised to show a drop in the inflation rate, which might encourage banks and building societies to offer lower mortgage costs.

The inflation figure could go down nearly two percentage points from just over 10% to 8.4%, the Financial Times reports.

Mortgage rates have stabilised since the turmoil created by the Mini-Budget in September, but are generally much higher than last year.

They have remained almost static in the past week, although sub-4% rates have disappeared with the lowest now standing at 4.06% at both 60 and 75% Loan-To-Value (LTV), according to Rightmove’s tracker.

Reassuring

Matt Smith, Rightmove’s expert says: “Largely unchanged mortgage rates this week is some good news for home-movers who are planning their next steps.

“The stability we are starting to see from week-to-week is reassuring for movers, helping them to understand how much they are likely to pay each month on a mortgage.

“Looking a bit deeper, we have seen the last remaining sub-4% rates removed by lenders”

“Looking a bit deeper, we have seen the last remaining sub-4% rates removed by lenders, reflecting increases in swap rates over the last few weeks.”

Lenders may respond soon after the inflation figure is revealed, he says.

“If inflation falls by more than the markets are predicting, this could be positive news for mortgage rates, though if inflation remains higher than forecast, we could see further pressure on lenders to increase rates.”