Big UK lenders cut fixed mortgage deals in sign rates may be close to peaking

Increased housing costs have put further pressure on Britons struggling to cope with the cost of living crisis. Photograph: Tolga Akmen/EPA

Several big lenders including Nationwide, HSBC and TSB have cut rates on their fixed mortgage deals in a sign that home loan costs may be close to peaking after surging to nearly 7%.

The reductions follow data last week that showed inflation fell further than expected in June, helping to calm financial markets and trim expectations of the number of interest rate rises still required to tame inflation.