MoneyExpert.com: Bank of England base rate cut

Sean Gardner of MoneyExpert.com, said: "Things have changed dramatically since the base rate was last at 5 per cent. Mortgage applications fees have risen by 55 per cent and fixed mortgage rates are also higher now than they were back in November 2006.

"However this latest rate cut is a chance for lenders to pass on some savings to consumers. We're not expecting fees and rates to be slashed dramatically, but hopefully we will see some respite and a settling of the mortgage market in particular.

"Cash-strapped consumers have had a rough ride over the past six months and with confidence in the money markets so low it is fair to say that a rate cut should come as welcome relief.

"However consumers will only really feel that the Bank of England has done them a favour if mortgages become cheaper and they have to rely less on credit and loans. As the base rate continues to drop, hopefully providers will step up to the plate and offer consumers cheaper deals."