Fallout from trade deal turmoil

Cheaper mortgages could be a 'silver lining' in Trump tariffs

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Cheaper mortgages could be coming to the market in the aftermath of US tariffs, in a “silver lining” for borrowers amid a period of severe turmoil in the financial markets.

Experts said expectations that interest rates will fall have risen since Donald Trump's tariffs announcement last week.

Laith Khalaf, head of investment analysis for AJ Bell, said: “Trump's tariff announcement might have created havoc in the stock market, but there could be a silver lining for UK mortgage borrowers.

“Interest rate expectations are falling as markets price in the potential economic damage from US tariffs, and the likelihood the Bank of England will respond with interest rate cuts.”

He said traders in the financial markets were now “fully pricing in” a cut to UK interest rates when policymakers next meet, in May.