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Hello and welcome to Coffee House shots, the spectator's daily politics podcast.

I'm Natasha Farros and I'm joined by Katie Bulls and Kate Andrews.

Kate, we've had a rare piece of good news on mortgages today. What is it?

Yes Natasha, we do and good news is rare these days so it's nice to lead on it.

We have mortgage lenders about four major banks announcing that they're going to start to cut their

rate offers since last week's monthly inflation update looked better than expected.

It now does seem that the headline rate of inflation is falling pretty much in line with the

banks' expectations. If that continues it should come down quite significantly by the end of the

year. These are huge ifs right. This expects everything to go in the right direction

and the first half of the year has been proof that that is not always the case. But what is key

is that market expectation around where interest rates might peak which are our major tool,

our major lever to get inflation under control has reduced somewhat. So even a week ago the

market thought that peak interest rates would be about 6.5%. They now think it's going to be closer

to 6%. And some of the major banks are saying this is going to be reflected in the rate

market rates that they're offering to customers. So HSBC was the first one to announce earlier in

the week. They're going to cut their rates by about 0.35 percentage points nationwide's pledge

to follow suit. TSB plans to drop up to about 0.55 percentage points right now.

Barclays is looking at something smaller but the point is that these mortgage rates are going

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