Mortgage rates could dip below 4 per cent by next summer in a major boost to millions of families facing a financial squeeze, inews has been told.

Hopes are rising the property market may be past the peak of rising rates giving fresh hope to homeowners due to re-mortgage or get on the property ladder.

Several brokers have told inews that they expect some lenders to have to cut their rates on five-year mortgages to below 4 per cent in a bit to gain customers in a flagging housing market.

The growing optimism comes as the Bank of England MPC committee prepares to decide whether to maintain the base rate of interest, currently at 5.25 per cent, on Thursday this week, or increase it.

Several experts claimed mortgage rates will fall regardless of whether the base rate remains at the same level, as it’s expected to, due to the need for lenders to attract buyers, assuming the Israel-Hamas war does not escalate further, spooking financial markets.

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