Interest rates have been cut to their lowest level in over two years.

The Bank of England has cut the rates from 4.25 per cent to four per cent, confirming the news yesterday (August 7).

Interest rates impact mortgages and savings, as well as price changes.

We asked Alex Sharp from Kenilworth's GAM Home Loan Specialists for a brief synopsis of how this will impact local residents.

With the lowest interest rates since March 2023, Alex said average monthly payments would be roughly £40 lower on a standard variable rate.

"Two-year fixed rates are now lower than five-year rates, so it is worth speaking to your adviser about your options and the best plan for you," Alex said.

But he warned most banks and lenders had already lowered rates "so we do not expect them to lower again".

"The background swap rates have also dropped a little which is good news going forward," Alex continued.

For savers, rates will be down, continuing a downward trend.

Meanwhile, Alex said inflation rising could be good news for pensioners due to the government's Triple Lock.

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