What savers and borrowers need to do NOW ahead of expected interest rate cut tomorrow
EXPERTS have revealed what savers and borrowers need to do now ahead of the expected interest rate cut tomorrow.
Today, the Bank of England's (BoE) Monetary Policy Committee will meet, with its interest rate decision coming at midday on Thursday.
Financial experts, who expect a 0.25% cut from 4.25% to 4%, gave advice to both savers and borrowers ahead of the cut.
Scott Gallacher, Director at Rowley Turton, advised savers to review their accounts today.
He added: "Savers like ours in Leicester — many of whom still rely on the rates offered by their local banks and building societies — should be reviewing their accounts today. With the Bank of England widely expected to cut interest rates this week, the best fixed-rate savings accounts and ISAs could disappear fast.
"If you don’t need access to your cash straight away, now is the time to shop around and consider locking in a fixed rate. Don’t just accept whatever your local bank offers — it pays to look wider.
"Many of the best rates are available online, and even a small boost in interest can make a big difference over time. A few minutes of research now, or a quick chat with your financial adviser, could mean hundreds of pounds more in interest down the line. So don’t wait for rates to fall — act now and make sure your money is working harder for you."
Pete Mugleston, Mortgage Advisor & Managing Director at onlinemortgageadvisor.co.uk, said savers should shop around for the best rates now.
He continued: "Markets are heavily pricing in a rate cut this week, but the longer-term path for interest rates is far less certain given June’s surprise rise in inflation. Savers shouldn’t assume this is the start of a steady downward trend.
"With many instant access accounts already offering returns below inflation, shopping around and locking in the best fixed rates now could be a smart move to protect your savings."
David Stirling, Director at Mint Mortgages & Protection, said people locking in a mortgage deal should pause to see if rates drop.
He added: "It looks likely that Threadneedle Street will cut rates this week, but this does not necessarily result in drastic or instant lender cuts. Lenders will have considered long-term borrowing costs, competition, and their own margins though we could see a bit more downward pressure on rates, especially if markets believe more cuts are coming.
"If you're about to lock into a fixed-rate mortgage, it may be worth pausing briefly, but don’t hang about too long to secure a deal as you can often swap if rates fall."
Tony Redondo, Founder at Cosmos Currency Exchange, also advised borrowers to wait for a price cut.
He continued: “Cornwall’s housing market, driven by tourism and second-home buyers, often sees higher property prices, making mortgage affordability critical. A rate cut could ease pressure for first-time buyers in areas like Newquay, St Ives, or Truro, but don’t expect dramatic reductions.
"Local brokers can navigate Cornwall’s specific challenges, such as higher deposit requirements for coastal properties. For those on SVRs, remortgaging to a fixed deal could save thousands annually, especially given Cornwall’s elevated cost of living. Stay proactive, consult experts, and leverage Cornwall’s community resources, like Citizens Advice Cornwall, for free financial guidance.”
