Falling inflation has led to hopes that the Bank of England will keep interest rates steady, prompting the six largest mortgage lenders in Britain to reduce their mortgage rates to less than 5%. Barclays is the latest lender to cut its home loan prices, offering a two-year fixed rate loan at 4.8% for residential house buyers with a 40% deposit. Other lenders, including Halifax and HSBC, have also reduced their rates. Experts predict that mortgage rates could drop to around 4% by the end of the year. The average two-year fixed rate deal is now 6.19% and the average five-year deal is 5.79%, according to the data firm Moneyfacts, down from nearly 7% in July.
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