Interest rate cut hopes soar as FTSE surges and traders bet on Autumn date
A rates cut would bring relief to thousands of mortgage holders.
Strong performance from the FTSE 100 has raised hopes the Bank of England could finally cut interest rates.
The UK benchmark index rose 1.2 percent on Friday with Wall Street stocks also rising, with many market experts predicting a rates cut next week on August 1.
The Bank of England has consistently held the base interest rate at 5.25 percent in its latest decisions after consistently hiking the base rate in efforts to curb inflation.
A high base rate means savers have been enjoying high rates of return on their savings while mortgage borrowers have been hit with high repayments.
Managing director of Purplebricks Mortgages, Jo Pocklington, said the central bank's decision will be a "very close call".
She said: "Homeowners on a tracker or variable mortgage will feel the biggest and most immediate benefit from a Bank of England rate cut.
"Customers on a fixed mortgage will see no change to their payments. If the Bank of England decides to hold rates in August, that will certainly increase the likelihood of a cut in September."
Ms Pocklington said now is a good time for mortgage holders to get some expert advice. She explained: "My advice would be to speak to a good and trusted mortgage broker and have all of your options explained to see if you should stick or twist in line with the Bank of England.
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"The key thing to do is be vigilant to change and make sure you’re in the best position possible regardless of the decision."
Savers looking to switch accounts for a better rate may also want to act sooner rather than later.
Rates above five percent are still available on a range of easy access, notice and fixed rate savings accounts and ISAs, but these could soon drop if the Bank slashes the base rate.
Some banks have switching offers for new customers, offering free cash to incentivise people to switch to them from another savings provider.
Lloyds Bank is currently offering new clients an £175 switching offer, which is ending on July 30.
People joining Barclays can also get an £175 payment, with this offer available until August 30.
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