Which? Could Trump’s tariffs be good news for your mortgage rate?
Apr 17, 2025
Stephen Maunder, a mortgages expert, and Aneisha Beveridge, Head of Research at Hamptons, discuss the surprising effects of Trump’s tariffs on mortgage rates. They delve into the current competitive landscape among lenders, suggesting it might benefit mortgage holders. The conversation highlights the implications of recent rate drops for first-time buyers and the significance of economic factors on mortgage options. Additionally, they explore how stamp duty changes are impacting buyers and regional variations in house price recovery across the UK.
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Tariffs Lower Mortgage Rates Slightly
- Trump's tariffs have caused market volatility but led to a gentle drop in mortgage rates recently.
- This has introduced more lender competition and slightly lower mortgage rates, especially for first-time buyers.
Tariffs' Broader Economic Impact
- Tariffs impact global economic growth, putting downward pressure on interest rates.
- This may lead to lower inflation and potentially quicker base rate cuts by the Bank of England.
Base Rate Cuts Expected Soon
- The Bank of England is almost certain to cut the base rate soon due to global trade turmoil.
- Markets now expect rates potentially as low as 3.5% by year-end, down from current 4.5%.