The Bank of England cut interest rates again today by 0.5% to 1%, despite a growing argument that cuts in interest rates are not what is needed to stimulate the economy, or to encourage banks to lend more.
A number of lenders including Halifax, Nationwide and Lloyds TSB, have already said they will reflect the full cut in their standard variable rate.
As we have come to expect in the days before an interest rate announcement, some lenders have withdrawn their tracker deals completely. If this current round follows the usual pattern, then their eventual replacements are likely to track bank rate at an increased margin.
Those borrowers who already have a tracker will benefit in full from this latest reduction unless their scheme carries a collar, which is triggered.
As tracker margins have increased so fixed rates have generally fallen and there are now many 2-year deals below 4%, although they are restricted to a maximum of 75% of the property value.
Borrowers who need 85% or more have the most to gain from recent Government measures aimed at encouraging wider lending, starting to take affect.