The Bank of England has cut the base rate for the first time in more than seven years, reducing it from 0.5% to a new historic low of 0.25%. Here’s what it means for mortgages, savings, exchange rates and more.
Some mortgages will get cheaper. Around 1.5 million homes are on tracker mortgages, and these should drop, though fixes won’t change and with others it’s not clear-cut. If you’re shopping for a mortgage, while rates may come down slightly, as they’re already very low, why wait
It’s more bad news for savers. Savings rates have been woeful for years and are now likely to fall further, although if you’ve a fixed rate account you’re protected for the time being
The pound has fallen further. In the wake of the announcement we saw a further drop in sterling – the pound already bought fewer euros and dollars following the Brexit vote