The Martin Lewis Podcast Interest rate cut special: what savers & mortgage holders need do now. Including… why locking in savings can be a winner.
May 8, 2025
Jane King, an independent mortgage advisor from Ashridge Private Finance, joins the conversation to explore the recent UK interest rate cut. She shares critical insights on whether to fix your mortgage now or wait, emphasizing the importance of swift action for savers wanting to lock in higher rates. They discuss what it takes to get accepted for a mortgage, highlighting eye-opening facts that many might not know. Plus, a lively debate on savvy summer purchases abroad adds a fun twist!
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Rate Cuts Encourage Spending and Growth
- A Bank of England base rate cut encourages spending by making saving less attractive and borrowing cheaper.
- This boosts economic growth but risks increasing inflation due to more money flowing in the economy.
Fix Savings Before Rates Fall
- Lock in fixed-rate savings now to secure higher interest before rates drop further.
- Fixed-rate savings protect you from anticipated future rate cuts and market uncertainties.
Transfer ISA for Better Rates
- Transfer your cash ISA to a higher-interest provider to avoid earning low rates.
- You can transfer without losing ISA status and earn significantly more interest tax-free.