<h1>Bank slashes interest rates by 0.5% to new record low of 1%
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<p> By <a href="http://www.dailymail.co.uk/home/search.html?s=y&authornamef=Daily+Mail+Reporter" class="author" rel="nofollow">Daily Mail Reporter</a>
<br /> Last updated at 12:13 PM on 05th February 2009
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<img src="http://i.dailymail.co.uk/i/pix/2009/02/05/article-1136362-00FD77BE00000578-455_233x423.jpg" alt="The Bank of England " class="blkBorder" height="423" width="233" />
<p class="imageCaption">The Bank of England has decided to cut interest rates again
</p>
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<p> The Bank of England slashed interest rates by a further 0.5 per cent today to a new historic low of 1 per cent as it battled with Britain's slump into a long and painful recession.
</p>
<p>Last month the Bank's rate-setters had already brought rates to the lowest level in the Bank's 315-year history.
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<p>But the majority of lenders have cruelly chosen to ignore the plunging base rate - with many refusing to pass on the recent cuts in full.
</p>
<p>Less than 30 per cent of lenders passed on last month's half-point cut, according to the financial information firm Moneyfacts's research.
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<p>There is better news for the majority of customers with tracker mortgages, as these should automatically fall in line with today's reduction.
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</p>
<p>However, around 300,000 customers with these deals will not benefit from the cut, as so-called collars have already kicked in on their loans, so the rate they pay cannot fall any further.
</p>Nicholas Leeming, director of propertyfinder.com, said: 'Today’s rate cut will have a limited impact on lucky homeowners locked into tracker mortgages.
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</h1>
<p> By <a href="http://www.dailymail.co.uk/home/search.html?s=y&authornamef=Daily+Mail+Reporter" class="author" rel="nofollow">Daily Mail Reporter</a>
<br /> Last updated at 12:13 PM on 05th February 2009
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<img src="http://i.dailymail.co.uk/i/pix/2009/02/05/article-1136362-00FD77BE00000578-455_233x423.jpg" alt="The Bank of England " class="blkBorder" height="423" width="233" />
<p class="imageCaption">The Bank of England has decided to cut interest rates again
</p>
</div>
<p> The Bank of England slashed interest rates by a further 0.5 per cent today to a new historic low of 1 per cent as it battled with Britain's slump into a long and painful recession.
</p>
<p>Last month the Bank's rate-setters had already brought rates to the lowest level in the Bank's 315-year history.
</p>
<p>But the majority of lenders have cruelly chosen to ignore the plunging base rate - with many refusing to pass on the recent cuts in full.
</p>
<p>Less than 30 per cent of lenders passed on last month's half-point cut, according to the financial information firm Moneyfacts's research.
<br />
</p>
<p>There is better news for the majority of customers with tracker mortgages, as these should automatically fall in line with today's reduction.
<br />
</p>
<p>However, around 300,000 customers with these deals will not benefit from the cut, as so-called collars have already kicked in on their loans, so the rate they pay cannot fall any further.
</p>Nicholas Leeming, director of propertyfinder.com, said: 'Today’s rate cut will have a limited impact on lucky homeowners locked into tracker mortgages.
