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Martin Lewis explains how mortgages will be affected by the recent drop in inflation.

He explains he was surprised that swap rates (banks and lenders use interest rate swaps to manage their own exposure to interest rate fluctuations) didn't drop, instead remaining "stable" after the Bank of England announced inflation fell to 2.3%.

Martin added that had we seen a greater fall in inflation today, we would have seen swap rates and mortgages drop too.

"We would have seen over the next few days, the rate at which you could fix your mortgage drop even though there's been no actual change in interest rates.

"Things are going to remain likely as they are for now", Martin said.

This clip was originally from Nihal Arthanayake on 22 May 2024.

Listen to the Martin Lewis Podcast on 麻豆约拍 Sounds.