Express: Mortgage interest cuts may be short-lived' after inflation rise sends swap rates surging:

Recent mortgage interest rate reductions may be short-lived following an unexpected rise in inflation, which led to an increase in swap rates. 

However, today's Consumer Prices Index (CPI) report showed inflation rose by 3% in the 12 months to January 2025, up from 2.5% in December 2024. This increase was significantly higher than expected, causing swap rates - which had declined after the Bank of England's decision to lower central interest rates last week - to rise.

Harps Garcha, Director at Brooklyns Financial said: 

"Wednesday's unexpected rise in inflation has tempered prediction base rate cuts in 2025. With swap rates reacting sharply, recent mortgage rate reductions may be short-lived.

"Those looking to secure a new fixed-rate for their mortgage should consider acting sooner rather than later before lenders adjust rates in response to the shifting market."

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