The official borrowing rate set by the Bank of England has taken its first downward path since 2009. Now halved from 0.5 to 0.25 percent the movement has been deliberated for many years now but with no action at any of the monthly MPC meetings. This could now be a sign that the base rate will start to see movement again this year and be taken even lower.
The immediate effect will be two-fold: good news for those with variable debts, or looking to taken on credit - but further bad news for savers.
Mortgage deals on trackers should reflect the 0.25 cut, variable deals may change if the lender decides to reflect it as they are based on the lenders own base rate.
For those on fixed rate deals, if these are coming to an end (within 3 months) and will soon revert to the lenders variable rate then now would be a good time to arrange a remortgage.