For the first time in 7 years the Bank of England has cut the base rate in an attempt to mitigate the impacts of Brexit on inflation and unemployment. The base rate now sits at a record 0.25%, down from 0.5%.
Anyone who currently has a fixed rate mortgage, will not be affected by the changes. However, those on rates which track the BoE base rate will see a reduction in their monthly repayments. The average variable rate borrower will see a reduction of £19.68 per month (based on a current rate of 2.86% on a mortgage of £150,000).
In regards to the lenders own Standard Variable Rates, the indication so far is that the lenders will not be cutting their rates to match the Bank of England.