Which? responds to the Bank of England's decision to cut rates to 5%

Ele Clark, Senior Money Editor at Which?, said:

"Today's decision is good news for homeowners and people looking to get on the property ladder, and they will be hoping that this encourages lenders to cut their rates further. 

"Mortgage holders on tracker deals can now expect to start paying less. Those with fixed-rate mortgages should keep a close eye on the market and be ready to snap up a good deal when the time comes to remortgage. Whether you should move off a tracker mortgage will depend on your individual circumstances. If you're unsure about the right type of deal for you, consider taking advice from a mortgage broker. 

"A base rate cut is less positive news for savers, however. Firms may respond to today's decision by lowering their rates, which means savers get a lower return on their cash. When it comes to savings, loyalty is seldom rewarded. Which? research has consistently found that challenger banks and building societies offer better rates than high street banks, so if you're unhappy with the returns you're getting, now's the time to consider switching."

ENDS