UK interest rates could be heading sharply downwards – thanks to a combination of sticky inflation and the feared fallout from Trump’s tariff plans said James Sillars on Sky News. “Financial markets have priced in a 100% chance “ of a quarter point cut from 4.5% to 4.25% at the next BoE meeting on the 8th May according to LSEG data. Two or three more cuts are expected by year’s end.

UK lenders are “sharpening their pencils” for a price war, said Callum Mason in The I Paper. Lloyds, Barclays and Santander are already offering deals below 4%, though these are only available to those with very large deposits. Buyers without much of a deposit have a growing number of options said Marc Ashdown on BBC Business. Moneyfacts reports that the number of low deposit deals (at 90-95% loan to value) is at its highest since 2008. Yorkshire Building Society is offering a £5,000 deposit mortgage and Skipton’s “Track Record” deal offers up to 100% lending to those with a good record of paying rent.

Lower rates and easy affordability rules are an immediate boon, setting the stage for renewed upward pressure on house prices.