Bank of England interest rate cut – what does it mean for you?

The Bank of England has announced an interest cut from 0.5% to 0.25%

This comes as a move to try and stabilise the the economy after the Brexit vote.

What do you make of this decision? Will it have a major impact on your life and finances?

Savers

You will likely see a lower return on your savings because of the new lower rate.

Mortgage repayments

If you’re on a tracker mortgage then you can expect to see your monthly payments go down roughly £40 a month. If you’re on a fixed rate mortgage then you will likely see no change.

Holidays abroad

Because the Bank of England has decided to cut the interest rate we are likely to see foreign exchange rate fall too. This results in a weaker pound and more expensive holidays over seas.

Business borrowing gets lower

Depending on how quick the banks pass on these new lower rates on to companies, business could be likely to invest and expand while taking advantage of the cost of borrowing becoming cheaper.

Is this good or bad news for you?