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| Version 1 | Version 2 |
|---|---|
| 'Our mortgage may now go up by less than £125 a month' | 'Our mortgage may now go up by less than £125 a month' |
| (31 minutes later) | |
| Jon and Becky Ball say the rate cut may help their mortgage, but hit their savings | Jon and Becky Ball say the rate cut may help their mortgage, but hit their savings |
| The Bank of England cut interest rates on Thursday from 4.75% to 4.5%, the lowest level for more than 18 months. | The Bank of England cut interest rates on Thursday from 4.75% to 4.5%, the lowest level for more than 18 months. |
| Lower rates can reduce the cost of borrowing, but could also mean lower returns on savings. | Lower rates can reduce the cost of borrowing, but could also mean lower returns on savings. |
| The BBC spoke to borrowers and savers about how the rate cut will affect them. | The BBC spoke to borrowers and savers about how the rate cut will affect them. |
| 'We hope to jump on to a better rate' | |
| The Ball family have lived in their home for 11 years | The Ball family have lived in their home for 11 years |
| Becky and Jon Ball, both 40, live in Selby, North Yorkshire with their daughters, 12-year-old Sophie and nine-year-old Emily, and their dog Bertie. | Becky and Jon Ball, both 40, live in Selby, North Yorkshire with their daughters, 12-year-old Sophie and nine-year-old Emily, and their dog Bertie. |
| Becky works in finance and Jon is a truck driver. | Becky works in finance and Jon is a truck driver. |
| They have lived in their house for 11 years, and their five-year fixed term mortgage ends in April. | They have lived in their house for 11 years, and their five-year fixed term mortgage ends in April. |
| They currently face paying an extra £125 per month, with the payment going up from £460 to £585. | They currently face paying an extra £125 per month, with the payment going up from £460 to £585. |
| Becky hopes the rate cut means "our rate that we've secured at the minute would go down so that we can jump on to a better rate before April". | Becky hopes the rate cut means "our rate that we've secured at the minute would go down so that we can jump on to a better rate before April". |
| "We've already had discussions about what to cut back on to make sure we can meet the extra cost." | "We've already had discussions about what to cut back on to make sure we can meet the extra cost." |
| But Jon says the drop in interest rates will also hit their savings. "It's swings and roundabouts, you win with one, you lose with another. It's a really difficult time for everybody." | But Jon says the drop in interest rates will also hit their savings. "It's swings and roundabouts, you win with one, you lose with another. It's a really difficult time for everybody." |
| 'I'm making £40 less on my savings' | 'I'm making £40 less on my savings' |
| Craig Mountaine in Yorkshire has around £35,000 in savings in both savings accounts and premium bonds. | Craig Mountaine in Yorkshire has around £35,000 in savings in both savings accounts and premium bonds. |
| He says when rates were at their recent peak of 5.25% he was earning 4.75% on his savings, so around £180 a month. | He says when rates were at their recent peak of 5.25% he was earning 4.75% on his savings, so around £180 a month. |
| He is now earning 4%, which he expects to drop to 3.75% once the latest cut is factored in, equating to around £140 a month. | He is now earning 4%, which he expects to drop to 3.75% once the latest cut is factored in, equating to around £140 a month. |
| "I'm probably looking at losing £40 a month from the peak [to today]," he says. | "I'm probably looking at losing £40 a month from the peak [to today]," he says. |
| "As a semi-retired 55-year-old that extra income from savings interest allowed me and my wife to live rather than simply surviving." | "As a semi-retired 55-year-old that extra income from savings interest allowed me and my wife to live rather than simply surviving." |
| 'My mortgage could go up by £1,000 - we need more rate cuts' | 'My mortgage could go up by £1,000 - we need more rate cuts' |
| Gino says it is becoming unaffordable to live in London | Gino says it is becoming unaffordable to live in London |
| Gino Rocco, 59, and his partner Robert have a five-year fixed rate mortgage that is coming to an end in August. | Gino Rocco, 59, and his partner Robert have a five-year fixed rate mortgage that is coming to an end in August. |
| They currently pay just over £2,000 a month on their newbuild flat in London Bridge. That could go up by £1,000 depending on the deal they manage to land. | They currently pay just over £2,000 a month on their newbuild flat in London Bridge. That could go up by £1,000 depending on the deal they manage to land. |
| He welcomes the cut in interest rates, and hopes they continue downwards in time for when his mortgage is up for renewal. | He welcomes the cut in interest rates, and hopes they continue downwards in time for when his mortgage is up for renewal. |
| But he knows they will still face a significant increase. | But he knows they will still face a significant increase. |
| "We will have to make changes. I'm aware that for others it'll be much worse," says Gino, who works as an in-house solicitor. | "We will have to make changes. I'm aware that for others it'll be much worse," says Gino, who works as an in-house solicitor. |
| He adds that his service charge, heating and water bills have also gone up. | He adds that his service charge, heating and water bills have also gone up. |
| "It was comfortable but with everything else going up, it's just about affordable now. | "It was comfortable but with everything else going up, it's just about affordable now. |
| "It is not just people on low incomes who are struggling." | "It is not just people on low incomes who are struggling." |
| 'The interest rate on my credit card is 23% - a 0.25% cut is not enough' | 'The interest rate on my credit card is 23% - a 0.25% cut is not enough' |
| Subbu is worried about the credit card debt he is accruing | Subbu is worried about the credit card debt he is accruing |
| Subbu, 48, lives in Dorset with his wife and children. | Subbu, 48, lives in Dorset with his wife and children. |
| When the interest rate on his mortgage went up from 2.1% to 5%, his monthly repayments increased by £1,000. | When the interest rate on his mortgage went up from 2.1% to 5%, his monthly repayments increased by £1,000. |
| His current mortgage is up for renewal in 2028, so he is now using a credit card to pay for the increased costs. The interest rate on his credit card is 23%. | His current mortgage is up for renewal in 2028, so he is now using a credit card to pay for the increased costs. The interest rate on his credit card is 23%. |
| A quarter percentage point cut in rates is not helpful enough, he says. | A quarter percentage point cut in rates is not helpful enough, he says. |
| "It's really tough at the moment, I find that any excess cash goes on our basic living needs and we really don't have much leftover at the end of the month." | "It's really tough at the moment, I find that any excess cash goes on our basic living needs and we really don't have much leftover at the end of the month." |
| Subbu is speaking to a broker to release some equity from the house to pay off his credit card. That might mean higher repayments on the mortgage, but he feels that this could be a better solution as it is paid off over a longer period of time compared to a credit card. | Subbu is speaking to a broker to release some equity from the house to pay off his credit card. That might mean higher repayments on the mortgage, but he feels that this could be a better solution as it is paid off over a longer period of time compared to a credit card. |
| "It's been very stressful, I don't know how others manage. I hope that by the time we remortgage again, rates are a lot lower." | "It's been very stressful, I don't know how others manage. I hope that by the time we remortgage again, rates are a lot lower." |
| Get in touch | |
| How are the interest rates affecting your life? |