HOMEOWNERS have been handed a major lifeline as a Christmas interest rate cut looks almost guaranteed.
Following the Budget, City traders are putting the odds at 93 per cent that the Bank of England will trim the base rate from 4 per cent to 3.75 on December 18.
That is up from an 85 per cent chance earlier this week.
Markets are also betting on reductions by the end of next year — two quarter-point moves, with a fair chance of a third.
London Stock Exchange Group data points to cuts in March and July, taking it to about 3.25 per cent.
Swap rates, which guide fixed-rate mortgage pricing, edged lower after the Budget.
Read more on interest rates
Reflecting that, Nationwide and Virgin Money trimmed selected fixed mortgage deals by up to 0.19 percentage points.
Santander is offering the cheapest two-year fixed deal at 3.55 per cent for those with a 40 per cent deposit.
The optimism stems from Budget measures expected to cool price growth — including a freeze on rail fares, relief on fuel duty and help with energy bills — which analysts say could shave up to half a percentage point off inflation next spring.
Benjamin Jones, global head of research at Invesco, expects the Bank to resume cutting this month and to do a bit more in 2026 than markets currently assume.
Nigel Green, chief exec of deVere Group, said the package removes policy uncertainty and “allows the Bank to focus on inflation and growth – both of which point toward lower rates”.
FEARS LODGED
HOTEL chain Travelodge says its costs will rise as a result of the Budget — with staff bills alone going up about £11million in 2026.
Boss Jo Boydell also criticised plans for “tourist taxes” — with mayors in England given powers to levy charges on hotel stays.
The firm returned to profit growth in the third quarter.
However, underlying earnings for the first nine months fell to £140.2million from £171.7million a year earlier.
JP’S £10BN CITY BOOST
GLOBAL banking giant JP Morgan Chase has unveiled plans to build a new tower in London’s Canary Wharf in an estimated £10billion boost to the City.
The three‑million‑square‑foot UK headquarters is set to house 12,000 staff and become the bank’s biggest base in Europe, the Middle East and Africa.
Construction is expected to take six years and create 7,800 jobs.
JP Morgan chairman Jamie Dimon said: “The UK government’s priority of economic growth has been a critical factor in helping us make this decision.”
£150m BONUS
DEBENHAMS has unveiled a blockbuster bonus plan that could hand boss Dan Finley nearly £150million without a shareholder vote.
Total awards to execs will hit £222.2million if its stock climbs from 11.5p to £3 within five years — valuing the business at £4.2billion.
It comes amid a row with major shareholder Frasers Group.
Debenhams said the turnaround incentive will not go to a vote due to disruption by a “major competitor”.
