Karl Thompson, of the Centre for Economics and Business Research, a think tank, said: “There is a risk premium, a Truss premium, which seems to be starting to ease.”
Cebr still expects mortgage rates to continue to rise to 7pc at the start of next year, up from 6.5pc today. But this 0.5 percentage point rise will be far lower than the Bank Rate increases over the same period. After an expected 0.75 point increase on Thursday, the Bank of England is likely to make a 0.5 point increase in December, Mr Thompson said.
Simon Gammon, of Knight Frank Finance, a broker, said: “The Bank Rate rise won’t impact fixed rates right now because they have been so dramatically increased over the past few weeks that you could argue that they are overpriced.”
But the market is not a blanket picture. The price gap between deals for buyers with large deposits and those with very small ones is likely to widen, Mr Gammon said.