Bank Of England FINALLY Cuts Base Rates By 0.25% To 5% - Good News For Mortgage Borrowers After months of dithering, the Bank of England has finally cut the base rate

Money Tips Daily by Charles Kelly, former IFA and author of

Bank Of England FINALLY Cuts Base Rates By 0.25% To 5% - Good News For Mortgage Borrowers

After months of dithering, the Bank of England has finally cut the base rate to 5 per cent, the first time the central bank has voted to cut the base rate since 2020.

On seven consecutive occasions the central bank voted to hold rates at 5.25 per cent between August 2023 and June 2024, despite falling inflation. There had been 14 consecutive base rate hikes since December 2021.

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The bank’s successive interest rate rises between December 2021 and August 2023 were bad news for borrowers but good news for savers.

The average two-year fixed mortgage rate is now 5.78 per cent, according to Moneyfacts, and the average five-year fix is 5.39 per cent.

Right now, the lowest five-year fix is 3.99 per cent and the lowest two-year fix is 4.42 per cent, but lenders have already started cutting rates, but beware for excessive arrangement fees.

Savers Rates

Say goodbye to great savers deals, including Santander's 5.2 per cent special edition easy-access rate and NS&I's one-year bond paying 6.2 per cent, which launched in September 2023.

One of the best one-year fixed-rate account on the market now pays 5.4 per cent, down from a high of 6.2 per cent in October 2023.

Savers should note that 1,638 savings accounts still beat inflation which is now at the Bank of England's target of 2 per cent, according to the Mail Online.

This means the value of your money is growing in real terms against inflation.

NS&I revealed it will offer a new one-year Guaranteed Growth Bond paying 5.15 per cent or a Guaranteed Income Bond at 5.03 per cent.

The offer is exclusive to existing 6.2 per cent bond holders and will be available when their current one matures, starting from the end of next month.

A saver putting £10,000 in Union Bank of India's one-year fix will earn a guaranteed £554 interest over one year. It comes with full protection under the Financial Services Compensation Scheme up to £85,000 per person.

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Income tax, VAT, Council Tax, Car Tax, Insurance and Travel Tax, Green Energy Taxes, BBC Licence Tax, Stamp Duty, Capital Gains Tax, Section 24, Business Taxes and the final kicker; Inheritance Tax for your dependents!

You can legally reduce and mitigate your taxes and inheritance tax for your dependents.

Wills and Trusts

New research from Canada Life reveals that over half of UK adults (51%)1 have not written a will, nor are they currently in the process of writing one. This includes 13% of people who state they have no intention to write a will in the future.

Section 24 Landlord Tax Hike

Interview with Chartered Accountant and property tax specialist who reveals options and solutions to move your properties from your own name into a limited company or LLP whilst mitigating the potential HMRC pitfalls.

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