Peopleschampion.com welcomes the Bank of England MPC's decision to cut interest rates by 0.25% to 5.5%.

Jim Spowart, the chairman of Peopleschampion.com, said: “This is welcome news as many people face tougher times ahead. Thousands of homeowners on fixed loans mortgages, set a few years ago, are reaching the end of their cheaper loans. They faced higher fees but this will help ease the burden.”

“I think it is very important for people with fixed rates mortages that are coming to an end to start shopping around now.”

Mr Spowart expects the MPC to watch the impact of this decision and consider a further cut of 0.25% in January or February 2008.

Referring to the recent credit crunch, Mr Spowart said: “Rebuilding customer trust is not something a bank can do overnight. And it is interesting - but highly predictable - that people are much more canny with their own money than the smart money men and women taking higher risks - and earning bigger bonuses. It seems that one in five stock market investors have moved their money into more cautious investments, such as cash or bonds, in the past three months.”

“It’s clear that people need to keep checking their finances at this tougher time – and keep scouring for good deals on the internet, because they are still out there. A lot of people will be finishing fixed rate mortgages in the coming months and need to start shop around now. The Northern Rock had nearly 20 per cent of the UK mortgage market, so whoever takes over can start rebuilding confidence.”

“For the rest of us, I reckon we should be making our New Year resolution now: book an appointment and speak to someone with some long-term wisdom who knows about the wider financial situation.”

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