Relief for borrowers as UK interest rates cut but little sign big reductions to come

Incremental cuts likely over two to three years with rates expected to stay well above pre-Covid levels of 0.75%

• Bank of England cuts interest rates to 5% in first reduction since March 2020
• How will Bank of England interest rate cut affect my finances?
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Borrowers will breathe a collective sigh of relief. The Bank of England has cut interest rates by a quarter point to 5% and major lenders are shaving their best-buy mortgage offers in response.

Those wanting to get on the housing ladder should find property slightly more affordable after the cut, which ends a year of ultra-high borrowing costs and is the first rate cut in more than four years.