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The Bank of England has announced an interest rate cut today (January 8th), which takes the level down to the lowest seen in the history of the financial institution.

Individuals looking to take out a loan could find themselves benefiting from this move, if the bank or building society they choose decide to match the cut with their own rates.

And while cash-strapped consumers eager for a bank account boost may be considering secured loans - because of the lower annual percentage rate that may be on offer - it could be advised that they wait and see which loan providers follow the lead of the Bank.

HSBC has raised the interest rate on its tracker mortgages in preparation for the cut, which sees the rate stand at 1.5 per cent.

Lloyds TSB and the Cheltenham & Gloucester (C&G) have stated that they will match their standard variable mortgage rates to the decline.

Stephen Noakes, C&G marketing director, comments: "No matter how much is cut from the Bank of England base rate, we'll continue to pass it on to existing customers until product rates reach zero per cent."

But struggling Britons may have to wait and see whether such savings will be passed on to loan products available on the market.