The Bank of England has slashed the base rate to 0.1 per cent, the lowest level seen in history.

This follows the bank cutting the rate to 0.25 per cent on Wednesday 11 March, itself the lowest rate ever recorded at the time.

The bank notes that the monetary policy committee members voted for the cut unanimously in a special meeting, alongside an agreement to buy £200bn more of government and investment-grade corporate bonds, taking total purchase value to £645bn.

It adds that the MPC will be meeting again on 25 March as regularly scheduled.

Coreco managing director Andrew Montlake says: “This dramatic rate cut… is ultimately a symbolic one but it shows the absolute carnage that Covid-19 is wreaking across the UK and global economy.

“For the BoE to cut rates right to the bone highlights the extraordinary times we are living in.

“With UK interest rates now at their lowest level in history, we expect a surge in enquiries about what this means from existing and prospective mortgage borrowers.

“Those on a tracker product will see an immediate benefit, but fixed rates are unlikely to be cut much further.

“Lenders have their own issues to deal with as many of their staff are off or working from home so this is unlikely to translate into cheaper rates across the board.

“We are already seeing some lenders, especially more specialist mortgage providers, increase their rates to protect their positions.

“In the current climate, lenders need to preserve their margins more than ever, if not bolster them further.

“For anyone looking at remortgaging within the next six months, now is categorically the time to get on with it.”