The Bank of England today reduced the _base_ rate for the 5th consecutive month. This month the ½% reduction brings the _base_ rate to a new historic low of 1%.

Adrian Coles, the Director General of the Building Societies Association (BSA), is one of many who feel the rate cut is a mistake, calling the decision "an assault on savers". He also claims that the decision will have a detrimental effect on mortgage lending, particularly affecting the flow of funds in to the mortgage market through a drop in savings, therefore making it even more difficult for new borrowers to obtain the funds they require.

This will be at odds to anyone currently on a tracker or variable rate mortgage loan, who will be more than happy if they see their mortgage payments go down. So far Lloyds TSB, Halifax, Woolwich & Nationwide have all promised to pass on the full ½% cut to all of their variable rate mortgage customers.

Nationwide however, have enforced a tracker floor of 2%, meaning customers who reserved a mortgage before 6th November 2008 on a tracker rate will not feel the effects of _base_ rate cuts below 2% It should be noted however, that the floor originally stated was at 2.75% and this had previously been waived.