Interest rate swaps, which determine the rate at which fixed rate money is priced between financial institutions, have fallen for the second time in the space of a week which Portman says should spark a reduction in the cost of fixed rate mortgages.
Financial markets are currently trading interest rate swaps at the lowest levels seen in over a year and the Portman, which anticipated this move, cut its fixed mortgage rates last week.
Matthew Wyles, Group Development Director at Portman said: "The markets have suddenly and decisively concluded that rates have peaked - it looks like the turn of the tide. Fixed rate mortgages are going to start looking very attractive, particularly for those borrowers who like a bit of certainty in their domestic budgets."
Wyles warns against a waiting game: "During the last week, two to five fixed rates in the wholesale markets have fallen by 0.15% or more. It could be quite a while before the Bank of England moves the Base Rate and borrowers who hang on could miss a real opportunity".
