Today, the Bank of England cut the base rate for 4%, making it the 5th reduction in the past year and now the lowest rate since March 2023.
The cut reflects the ongoing fall in inflation and so a natural consideration by the BoE is to gradually (& cautiously) reduce interest rates.
So what does this mean for you?
For Mortgage holders:
• Tracker or variable rate mortgage: You'll likely see a small drop in repayments which aligns to the base rate drop.
• Fixed-rate mortgage: No changes. However, if your deal is ending soon, this could be a signal for better offers ahead.
For Savers:
Expect lower returns, particularly on easy-access and variable accounts. It's nothing to panic about, just the way of the Banking world but you can compare your options if you want to get more for your money.
Typically you'll find higher returns with fixed rate saving accounts.
For those with variable debt:
Interest on credit cards, overdrafts and variable loans may decrease slightly, of course all depending on your lender.
Whether you're a homeowner, saver or just trying to stay ahead financially… today's base rate cut is a reminder that the economic landscape is shifting. It's a good time to check in with your money and whether your current deals still work for you.
✉️ This newsletter was originally sent to subscribers on 7th August 2025. Want to get future newsletters straight to your inbox? Subscribe here.