How will mortgages and

Bank lending rates UK

Competition is also fierce between providers at the moment, driving down mortgage rates.

If Bank Rate is cut to 0.25pc on Thursday, as widely predicted, deals could get even cheaper.

Ms Nelson suggested any cut to a variable tracker mortgage, which moves in line with Bank Rate, will benefit the borrower.

However she warned that many tracker mortgages have "floors built into the terms and conditions" so there is no guarantee of a reduction if Bank Rate falls.

Standard Variable Rates may also come down however, Ms Nelson said there are much better deals out there.

Ms Nelson said: “With the average SVR standing at 4.8pc today a cut in Bank Rate will have little effect. Borrowers sitting on this option would be significantly better off if they shopped around and opted for a low fixed rate deal instead.”

“With the economic uncertainty and fixed rates currently lowest on record anyone coming to the end of their deal or sitting on their standard variable rate SVR would be wise to consider a fixed rate deal, ” she said.

Borrowers should not expect mortgage rates to continue falling forever.

The Government backed Funding for Lending Scheme, which started lending providers cheap money in 2012, is coming to an end in 2018. Ms Nelson suspects the cash is soon to run out. She said because of this rates could rise shortly after.

Source: www.telegraph.co.uk
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