The Bank of England’s monetary policy committee has announced its latest base rate decision – and it’s a 0.25% cut.

Base rate now stands at 4.25%.

This is the fourth reduction from last year’s peak of 5.25%, and the second this year. 

Nearly 600,000 homeowners have a mortgage tracking the rate, so the change will have an immediate impact. A typical tracker mortgage is likely to see about £29 knocked off monthly repayments.

However, 80% of homeowners with a mortgage have a fixed-rate deal. The average two-year fixed mortgage rate is 5.15%, according to the independent mortgage market monitor Moneyfacts, and a five-year deal is 5.08%.