How the last interest rate cut hit mortgages and savings

The Bank of England has decided to hold interest rates at 5%, despite a rate cut in the US. There are still expectations for a rate cut later in 2024. The impact of the August rate cut on mortgages has led to a decrease in rates, but they are still higher than before the crisis. Standard variable rate mortgages have also reduced. For savers, average savings rates have begun to drop since the rate cut, but are still better than in previous years. Savers are advised to review their accounts to ensure they are getting competitive returns. The average easy access rate paid by major high street banks is 1.93%, lower than the market average. Savers are advised to seek out higher rates from less familiar brands, especially with expected interest rate cuts. Challenger banks and building societies offer competitive returns and deposit protection, making them a viable option for savers.

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