Fri, 07 Feb 2025

Fri, 07 Feb 2025 'Our mortgage may now go up by less than £125 a month'

The BBC hears from borrowers and savers about how the cut in interest rates will affect them.

* The Bank of England cut interest rates from 4.75% to 4.5%, their lowest level in over 18 months.
* Borrowers like Becky and Jon Ball hope the rate cut will reduce their mortgage payments, but may not see immediate relief as they have a fixed-rate deal that ends soon.
* Savers like Craig Mountaine are likely to lose out with reduced interest rates, earning around £140 per month compared to £180 previously.
* Homeowners like Gino Rocco and Subbu are bracing for significant increases in their mortgage payments when their deals come up for renewal, despite the rate cut.
* A quarter-point reduction is not enough for some borrowers, who feel that lower interest rates are needed to ease financial pressures.
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