What happens to your finances now Bank of England has cut interest rates due to coronavirus? Winners and losers revealed

According to banking trade body UK Finance, as of December 2019, there were 0.9million outstanding trackers loans (11 per cent of mortgages), 1.3million outstanding standard variable rate loans (16 per cent), and 5.7million outstanding fixed loans (69 per cent).

Mark Harris, chief executive of mortgage broker SPF Private Clients, added: "We would expect five-year pricing to fall close to its previous record low of 1.29 per cent in 2017."

The average five-year fix currently stands 2.73 per cent, according to financial provider Moneyfacts.

Credit card borrowers - rates could be cut

While the majority of banks The Sun asked say they're still reviewing the base rate cut, the following have revealed their credit card rates:

• Bank of Scotland, Halifax, and Lloyds Bank: All lending products with elements that track the Bank of England base rate will see the decrease reflected in their rates.
• Barclaycard: All Barclaycard credit cards track the Bank of England base rate. This means the standard and cash rates on all Barclaycard products will drop by 0.5 per cent. Barclaycard's Premier Charge & Woolwich accounts, which are no longer on sale, don't track the base rate so these are unaffected.
• Co-operative Bank: The interest rates of credit cards that track the base rate have dropped by 0.50 per cent today, March 12, but the others will remain the same.
• Metro Bank: Its credit cards are not linked to the base rate and there are currently no changes planned.
• TSB: The interest rates on credit cards will drop by 0.50 per cent on April 1.

Andrew Hagger, personal finance expert at comparison provider Moneycomms added: "If your credit card provider is one that links your rate to base rate you will see cheaper borrowing costs but the impact will be minimal - 0.5 per cent less on a £2,000 credit card balance equates to just £10 savings in interest in a year - less than a pound a month."

But Martin Lewis says the impact on loans, credit cards and other types of debts is likely to be minimal.

He said: “Most loans, credit cards and other debts will likely be unaffected or only minimally affected because the Bank’s interest rate only plays a small part in their rates."

Small and medium businesses - cheaper access to loans

Alongside the base rate cut, the Bank of England has introduced a new funding scheme with additional incentives for small and medium-sized enterprises.

Federation of Small Business national chairman, Mike Cherry, said: “The £100billion cash injection into banks earmarked for small business lending will hopefully throw a lifeline to firms suffering from cashflow issues.

"More than a third of small firms that secure new finance use it to manage cashflow, so it’s absolutely critical that this new funding makes its way to small firms in need as swiftly as possible."

But some commentators say this still won't be enough to boost the economy.

LOSERS

Cash savers - interest rates could be cut

The only major banking group The Sun spoke to that would confirm the exact impact, if any, on savings rates was Lloyds Banking Group:

• Bank of Scotland, Halifax, and Lloyds Bank: It says changes to savings rates will not reduce by as much as the full 0.5 per cent reduction in base rate but has yet to reveal further details.
• Metro Bank: It doesn't offer tracker savings rates for personal banking customers. It's still reviewing variable rates.

Of course, fixed rates savings rates won't change for existing customers.

But in the past, lenders have used base rate cuts an an opportunity to slash the amount of interest paid on new accounts and on variable accounts.

Laura Suter, personal finance analyst at investment platform AJ Bell, said: "Savers who have already seen a swathe of cuts to the interest they get on their cash are likely to be hit further.

"The top rate you can get on an easy-access cash account at the moment is 1.3 per cent and this now looks ripe for another cut following today’s move."

Anna Bowes, co-founder of savings comparison site Savings Champion and Rachel Springall, finance expert at comparison site Moneyfacts.co.uk both expects rates to fall.

Ms Bowes said: "We are certain providers will pass on at least some of the dramatic rate cut to savers."

While Ms Springall added: “It almost seems inevitable at this stage that the base rate reduction could get passed on in full to savers over the next few months."

The average easy-access rate is currently a pitiful 0.56 per cent, according to Moneyfacts, so savers should use this an opportunity to ditch and switch.

Retirees - annuity rates could fall

Pension savers no longer need to take out an annuity, which provides a guaranteed income for life.

But those thinking of getting one could be hit with a blow as experts say rates could fall as a results of the base rate cut.

Steven Cameron, pensions director at Aegon explained: “The recent fall in the stock market will mean those whose pension is primarily invested in stocks and shares will have seen their pension pot fall in value.

"The reduction in interest rates creates a double whammy as annuity rates are also likely to be cut.