The rate has been cut regularly since October, when it stood at five per cent.
While this is good news for borrowers on tracker rates, savers will feel the pinch and those on fixed rates – or whose lenders don’t pass on the cut in their variable rates – will see no difference.
Lloyds TSB and its subsidiary Cheltenham & Gloucester has already said it will pass on the cut in full. Other lenders are following suit.
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