UK lenders expected to make further mortgage rate cuts next week

Mounting optimism that home-loan costs have peaked after Bank of England keeps interest rates on hold

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UK lenders are expected to launch another round of mortgage rate cuts next week amid optimism home-loan costs have peaked after the Bank of England's decision to keep interest rates on hold.

So far Nationwide is the only big lender to reduce mortgage rates since the Bank announcement on Thursday. NatWest went earlier in the week after official data showed an unexpected fall in UK inflation in August.