moneysupermarket.com comment on the MPC's decision to cut interest rates by 0.25 per cent

Louise Cuming, head of mortgages at price comparison site moneysupermarket.com, said:

"This cut from the Bank of England brings positive news for borrowers.

Homeowners, especially those due to remortgage soon, will be letting out a sigh of relief.

Now they should demand mortgage providers to reflect this cut.

"The mortgage market has been increasingly divorcing itself from MPC cuts, and recently we have seen trackers increase totally independently.

Brits coming off fixed rate mortgages in the next month or so need to look closely at rates and fees." Kevin Mountford, head of savings at price comparison site moneysupermarket.com, said: "The news of a base rate drop is normally bad news for savers as providers slash the rates on their products.

However, we are currently experiencing a 'rate inflated' market, which may not see any direct impact from a cut.

"The savings market is made up by three main provider types, each of which behave in a different way.

With a cut, traditional big bank brands are likely to maintain headline grabbing rates, whilst slashing saving rates on existing products.

"The tactical UK players, which often need minimal inflow and dip in and out of the market when required, tend to be more opportunistic and we will still see the occasional strong rate appear from them.

"The direct providers - currently dominated by overseas players - tend to operate with lower costs and can reflect this in their rate.

Given that they still need to build credibility in the market, they are likely to play fair where rate reductions are concerned.

I believe the likes of ICICI, Icesave and Kaupthing, will still be at the top of the table post today.

"I believe the top rate will stay above six per cent for the foreseeable future.

The market will also ride on the back of the ISA season so should remain strong.".

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