MoneyExpert.com: Bank of England base rate cut

Sean Gardner, director of MoneyExpert.com, said: "This is another massive rate cut that will bring further relief to homeowners, particularly those with tracker mortgages. And around six million of us have trackers and standard variable rates.

"But what we really need now is for lenders to come out of their shells and start doing what they're meant to do - lend people money.

"And the bad news won't stop with this move - our research shows that nearly one in three people are concerned about their debts and 27 per cent of people in debt have actually gone further into the red in the last three months. Rate cuts won't be much help with easing the pain of credit card and loan debts.

"With a base rate of just two per cent borrowing money should be cheap as chips - the problem for consumers will be finding a lender willing to part with some cash in the first place. Otherwise the base rate cut won't make a lot of difference to real people."