Bank of England slashes interest rates to combat coronavirus 'shock' – what it means for you

I have a mortgage. What happens now?

Some will see mortgages get cheaper after the base rate cut – but it depends on the type of mortgage you have:

• Fixes are fixed – check if you'll save ditching yours. As the name suggests, rates WON'T change during the fixed period – though any new fix you remortgage to in future may end up being cheaper now the base rate has dropped. 
  
  But that doesn't mean doing nothing until your fix runs out. Use our Ditch your fix? tool to check if you can save by switching. 
  
  
• Lenders MAY cut standard variable rate (SVR) or 'discount' mortgages. These move at lenders' whim, so it depends what individual lenders decide to do – we're checking with the big ones now.
  
  You'll usually be on an SVR after your fix or tracker ends. A 'discount' mortgage follows the SVR at a set rate, eg, if the SVR is 4% and the rate is SVR minus one percentage point, it's 3%.
  
  SVRs are pricey, so if you're on one, don't automatically stick with it even if your rate is cut. 
  
  
• On a tracker mortgage? Check when it will fall. As the name suggests, these 'track' the base rate, so mortgage costs should drop by an average £35-40/mth on a typical £150k mortgage. 
  
  A tiny number won't see rates drop where their deal has what's called a 'collar', which prevents rates falling below a certain level. You should be contacted by your lender if you're impacted.

We're speaking to all the major providers now to ask them what they're doing in response to the base rate cut. These will be updated in the table below.

Whatever the impact, if coming to the end of your fix or tracker, pounce on a new deal – you can usually do this up to six months ahead. If looking for a new deal, whatever the reason, see our Remortgage Guide or First-Time Buyers' Guide for help, plus our Mortgage Best-Buys Comparison for the top deals. 

I'm looking for a mortgage – what should I do?

Our message for months has been that mortgage rates are already incredibly low, so if you're looking for a deal and you qualify for one, why wait? The base rate going down doesn't change that message.

While there is a chance that we could see slightly lower best-buy mortgage rates in the wake of the cut, rates are already very low. See our First-Time Buyers' Guide or Remortgage Guide for full help and our Mortgage Best-Buys Comparison Tool to find top deals.