Mortgage rates are expected to continue their descent after figures released on Wednesday show inflation falling, as experts predict the base rate could be cut next month.

Banks have been cutting the prices on their home loans in recent days, with Santander announcing the cheapest deal on the market – at 3.55 per cent – earlier this week.

Here’s what Wednesday’s inflation figures mean for interest rates, and what could happen to mortgage rates as a result.

Interest rate cut in December likely

Interest rates – set by the Bank of England (BoE) – tend to fall as inflation moves towards the BoE’s target level of 2 per cent.

Experts had already been predicting that the BoE could lower rates next month – from 4 per cent to 3.75 per cent – and Wednesday’s figures make this even more likel

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