While fixed rates have always proved a lure for some it allows them the security of an unchanging monthly repayment, the latest 0.5 per cent rate cut will be felt first and foremost by those with tracker deals.
In the meantime, swap rates have come down, suggesting that lenders could soon pass on cheaper lending to their fixed-rate deals, although this still remains to be seen.
Ray Boulger of John Charcol, comments: "After initially spiking up on the back of the Lehman's bankruptcy, swap rates have fallen back sharply, especially two-year swaps, which are now down to 4.9 per cent, having been as high as 5.6 per cent last month.
"As a result of this and today's package from the Government the recent trend of lenders increasing fixed rates will reverse soon and Bristol & West's announcement of further increases in their fixed rates only two hours after today's Bank Rate cut was announced is not likely to followed by many lenders."
Boulger goes on to suggest that borrowers who want to take advantage of interest rate cuts now would be best off on a tracker deal as these will keep pace with the changing interest rates.
He comments: "With further Bank Rate cuts expected over the next few months it is still too soon to buy a fixed-rate mortgage and so we continue to recommend trackers, preferably one with a droplock option which allows borrowers to move to a fixed rate when they so choose to, with no delay or complicated paperwork.
"For borrowers who want or need the security of a fixed-rate there is a good case for delaying an application until the impact of the new paradigm is reflected in lower rates."
Shortly after the half point interest rate cut was announced, Woolwich, Halifax, Lloyds TSB and Cheltenham & Gloucester all announced they would be passing on the full cut to their standard variable rate deals, effective from November 1 2008.
