BOE Rate Cut

Bank of England base rate cut

Following the announcement of the Bank of England to cut the rate to 0.25% from 0.75%, and than from 0.25% to 0.10% a few days later, there were questions about what it means for mortgages and savings.

When it comes to the mortgages, you will only benefit from the cut if you are on Standard Variable Rate or on tracker mortgages. There are very few tracker mortgages around nowadays but there is a considerable number of people who have SVT, especially those priced out of the mortgage market after the last crisis.

If the lenders carry over the cut on to their customers, this might be the best time to buy or remortgage as the rates are lowest since 2016.

When it comes to savings, the savings interest rates will go down so your savings will bring less money in. Look for the best ISA accounts and some fixed term as they are still available few that are better than others.