Relief for borrowers as UK interest rates cut but little sign big reductions to come

The interest rate cut followed a fall in inflation to 2% that the Bank’s monetary policy committee said reflected a broad slowing of prices growth. Photograph: Andy Rain/EPA

Borrowers will breathe a collective sigh of relief. The Bank of England has cut interest rates by a quarter point to 5% and major lenders are shaving their best-buy mortgage offers in response.

Those wanting to get on the housing ladder should find property slightly more affordable after the cut, which ends a year of ultra-high borrowing costs and is the first rate cut in more than four years.