Britain's biggest mortgage lender expects three interest rate cuts this year The boss of Britain's biggest mortgage lender has told Sky News he expects three interest rate cuts this year, bringing some relief to borrowers and mortgage holders.
Lloyds Banking Group chief executive Charlie Nunn said he anticipates rates will continue to fall gradually thanks to the resilience of household and business finances - but cautioned that the UK could expect low growth because of a relative lack of investment.
And that's first of all because household finances continue to strengthen - there are some customers struggling to make ends meet and we're always focused on them - but actually, deposits and savings in households have increased 6% year-on-year, and cash flows for many businesses again have also strengthened in the last year.
As Britain's longest-serving bank chief in charge of the largest retail lender with more than 27 million customers, Mr Nunn is well-placed to assess consumer sentiment and economic prospects at the start of the year.
"Of course, most people choose to fix their mortgage for two to five years and the pricing on that has been relatively stable and we think that stability is likely to remain for the remainder of this year.
