Martin Lewis says mortgage shake-up could hand UK households £360 boost

Martin Lewis has issued his verdict on the base rate cut from the Bank of England - explaining how tracker rates could now fall by £360 a year. The BBC Sounds podcast host spoke out on Twitter, now X, in the wake of the Bank of England decision.

ITV regular and Money Saving Expert founder Mr Lewis tweeted: "Tracker rates will get cheaper by roughly £15 per month per £100,000 (variable & discount rates should drop too but don't have to go by same amount) Your fixed rate mortgage will not change.

"Though the rate you can fix at may get cheaper (although as they're based on predictions of future interest rate some of this cut is already baked in)." If a UK household lives in a £200,000 property, it could mean a £360 saving. Managing Director of Aurora Capital , George Holmes, said: "The Bank of England's decision to lower the base rate to 4.75% offers a glimmer of relief for SMEs grappling with escalating borrowing costs. However, this reduction must be viewed alongside last week's Autumn Budget, including the 1.2% rise in employers' National Insurance contributions and higher capital gains tax rates.

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While the rate cut may slightly ease financing expenses, the overall financial landscape for small businesses remains challenging thanks to these new fiscal measures. SMEs should remain vigilant, exploring competitive refinancing options and seeking tailored financial advice to navigate this complex environment effectively.

SMEs planning to borrow for expansion or investment should closely monitor how lenders adjust to the new rate and budgetary changes. Making informed funding decisions will be essential for sustaining growth and resilience in the months ahead."

John Fraser-Tucker , Head of Mortgages at mortgage broker Mojo said: “The autumn budget last week notably overlooked the mortgage market, leaving many existing borrowers and aspiring first-time buyers feeling uncertain about their options. It's completely understandable to feel apprehensive, especially when some mortgage lenders have increased their rates after a period of decline.

“However, today’s decision by the Bank of England to reduce the base rate to 4.75% is a significantly positive move for mortgage borrowers. This second rate cut of the year brings relief to both homeowners and potential first-time buyers. We’re optimistic that this change will encourage mortgage lenders, who have recently raised their rates, to rethink their pricing strategies and lower their rates in the coming weeks. "