The Bank of England increased interest rates for the 14th time in a row last week from 5% to 5.25%.

This is to try and curb the rate of inflation, which at the end of June was 7.9% and remains around 4 times the 2% target set by the bank.

However, despite the high inflation and the resulting Bank of England interest rate, some of the UKs lenders are reducing their 2 and 5 fixed rate mortgages.

One lender is set to reduce mortgage rates by up to 0.71 percentage points from this week, with a five-year fixed deal priced at 5.39% from 6.10%.

Other lenders are also reducing their rates across a wide range of products including for first time buyers in a bid to remain competitive.

This may be seen as a sign that the Bank of England rates may not stay as high for too much longer.

As the mortgage market adjusts to changes in the wider economy, you can be certain that we will be on call to help you find competitive arrangements to fit your needs.