Q&A: The rate cut and me.

(From Guardian Unlimited)

What does the interest rate cut mean to my mortgage?

It depends what type of deal you have. The 56% of borrowers on fixed-rate mortgages can be certain they won't benefit from the cut, while the 36% on tracker deals can be sure they will.

"If you have a tracker rate then it's happy days," says David Hollingworth of mortgage broker London & Country. "That's quite a substantial cut and you will feel the benefit of it from next month's payments ."

If, for example, you are paying 0.5% above the base rate, your interest rate will fall from 5.5% to 5%, knocking GBP35 a month off the cost of a GBP120,000 mortgage.

Those on other variable rate deals - either on …