Does the shock rate cut make you feel better or worse about your financial situation?
In a dramatic move the government has announced a cut in interest rates of 0.5%. The move has come as a huge surprise to the financial system, sending shares in London soaring.
But what difference is it going to make to you? If you have a tracker mortgage or a standard variable rate (SVR) product linked to the base rate your mortgage will now be cheaper, as your rates will follow the cut.
Fixed-rate borrowers won't see any benefit, of course, while SVRs not linked to the base rate will only change if your lender chooses to follow the rate cut - and money is tight for lenders and borrowers alike right now.
And what about your savings? After a rate cut savings providers often fall over themselves to follow the base rate down, but while many banks really need depositors' cash it would seem risky to put customers off. Banks could feasibly buck the trend and carry on trying to usher in savers with competitive rates.
So will the government's decision make any difference to your finances, or should the government have made a greater cut? Are you reassured or more concerned than before?
