Trump tariffs expected to lower UK mortgage rates

Following President Donald Trump's recent import tariffs, experts predict potential benefits for mortgage borrowers as interest rates fall. Laith Khalaf from AJ Bell noted that the market now anticipates three interest rate cuts from the Bank of England, leading to cheaper mortgage options. Similarly, MPowered Mortgages has already cut its rates by up to 0.21%, attributing this to decreased swap rates following the tariff announcements. While these tariffs are expected to have negative effects on the UK economy, they could provide a silver lining for homeowners, with rates potentially dropping as low as 3%. The overall impact of the tariffs on inflation and the economy remains uncertain, but the current trends suggest a positive shift for mortgage affordability in the near future. Analysts have observed that lower stock market performance typically correlates with falling mortgage rates, further supporting this optimistic outlook.