Last week the Bank of England made a very drastic decision to cut interest rates, and also made history in the process.
The rate before the cut stood at 1.5%, the fifth rate cut of its kind since October, were rates were over 4%, now standing at just 1%.
The cut by the Bank of England was their last effort to try and save the failing UK economy. The question is, will this cut actually be beneficial, as the previous four have done what seems like nothing for the UK Economy.
What we know for sure is that it will be the savers who are hurt the most, some receiving little or no interest, while fixed repayment mortgage holders will see no benefit either.
The people who will see substantial benefits are individuals on tracker or variable rate mortgages, some have dropped with the rate cuts, and some are actually now sitting below 1% thanks to the discounted rate some banks used to offer as a hook.
Even mortgage holders lucky enough to hold such a mortgage are being told that the rates are being capped at 1% or 1.5%, so the banks are simply, not passing the rates on to the consumer.