The Bank of England cuts the Bank Rate to 0.25%
The Bank of England has cut the Bank Rate to 0.25% from 0.5%. The interest rate is at a record low and this is the first cut since 2009.
The cut in rates was widely expected and is hoped to stimulate the economy following the economic shock caused by the UK’s referendum vote to leave the EU.
The cut in the Bank Rate is expected to be good news for borrowers, especially mortgage holders. There is still a question of whether the rate cut will be passed on to consumers but the answer will largely depend on the type of mortgage you have and your lender. Some lenders may only partially pass on the cut while others may decide not to make any changes to their rates. Some lenders have already confirmed that they will pass on the cuts in full.
The biggest losers appears to be savers. The rates for savers have been at a historic low and further cuts will not encourage people to save.Talk to Barnes Roffe today