The Bank of England has cut its official base rate for the fourth month in a row as it attempts to shore up the economy.

It now stands at 1.5 per cent, the lowest level in the Bank's 314-year history.

The historic cut will have mixed fortunes for borrowers and savers. We look at who the winners and losers are, including how mortgage lenders have reacted to the cut.

Will I get less interest from my savings?

Almost certainly, unless you have locked into a high-paying fixed-rate account. Savings rates have been on a downward spiral since the Bank of England began its rate cutting spree last October.

Back then you could fix your interest at an impressive 7 per cent. Now more than a third of savings accounts for deposits of £5,000 pay interest of 1 per cent or less.

Banks and building societies are expected to jump at the chance to shave rates again following today's historic base rate cut.

Not all savers will be affected. Some will see no change, but only because their bank or building society is already paying such measly rates they cannot go much lower. A growing number of institutions, including high-street names such as Abbey and Halifax, pay just 0.1 per cent interest to savers on some of their accounts: just £5 a year in interest on a balance of £5,000.

Other banks may continue to offer decent rates, because they desperately need to bolster their finances and it is one of the easiest ways for them to raise money.

But the rates paid on the highest paying accounts are expected to fall - two of the best were pulled ahead of the rate decision - so savers are being urged to grab the best deals while they can.

Where can I get the best savings rates?

You can get 4.65 per cent fixed for one year at Indian bank ICICI. Close Brothers is offering 5 per cent fixed for two years. It requires a minimum deposit of £10,000 and the rate is guaranteed only on applications received before close of business next Tuesday.

Will I be paying less for my mortgage?

Not necessarily. Most borrowers with mortgages linked to variable rates - about 8 per cent of the total - are unlikely to see any change in the interest they pay.

Almost three quarters of lenders failed to pass on December's base-rate cut to borrowers on variable rate deals. Mortgage experts believe that even fewer banks and building societies will pass on today's cut in the cost of borrowing.

So far, Lloyds TSB, Nationwide and HSBC have pledged to pass on today's interest-rate cut in full to borrowers on mortgages linked to their standard variable rate (SVR)

Few of their rivals are likely to follow, as they attempt to balance the needs of savers who are feeling short-changed. To find out how mortgage lenders have responded take a look at our list below, which will be updated as announcements are made.

About half of all borrowers are locked into fixed rate mortgages, which means they will not benefit from the drop in borrowing either.

Are there any winners?

About 4.2 million mortgage borrowers who have base-rate tracker loans will be celebrating. Their mortgage costs are guaranteed to drop in line with the base rate at the end of this month.

The typical monthly repayment on a £150,000 tracker loan is about £375 lower than in October last year. From January 1 their repayments will fall by another £62.50, on average.

However, Nationwide and some other lenders have refused to lower their tracker rates any further.

What about new borrowers?

A number of lenders have withdrawn their tracker range for re-pricing and are expected to relaunch them next week. If reductions follow the same pattern seen after previous interest rate cuts, new borrowers are likely to benefit from some but not all of today’s move.

I am keen to get my foot on the property ladder. Is this good news for me?

The interest rate, if you take out a mortgage, will probably be lower. But that doesn't mean it will be particularly cheap.

Lenders have become fussier about who they accept as new customers, with a 40 per cent deposit needed to get your hands on most of the cheapest deals. If your face, or rather your finances, don't fit you will be turned away at the door.

Also, lower interest rates are not expected to stem the fall in house prices. Nationwide, Halifax and the Council of Mortgage Lenders have all refused to make predictions for house prices falls in 2009. However, other commentators forecast a further fall of between 10 per cent and 15 per cent.

HAS YOUR MORTGAGE RATE BEEN CUT?

Halifax - variable rate customers will only see a 0.25 percentage point cut from February 1, when the lender's SVR is reduced from 4.75 per cent to 4.50 per cent.

Royal Bank of Scotland - is reducing its SVR by 0.25 per cent to 4.19 per cent from February 1.

Lloyds TSB and Cheltenham & Gloucester - Under Lloyds and G&G's terms and conditions, the difference between the base rate and the SVR cannot exceed 2 per cent. They, therefore, have to pass on the full 0.5 percentage point cut from February 1, reducing their SVRs to 3.5 per cent.

Nationwide building society - Nationwide's SVR terms and conditions have a similar clause, so it will also be reducing its SVR to 3.5 per cent from February 1. However, it has already said that it will not be reducing rates for its tracker customers.

HSBC -will pass on the full 0.5 per cent to borrowers with deals linked to its SVR with effect from February 6. The bank’s variable mortgage rate will fall to 3.94 per cent.

Skipton building society - will cut its SVR by 0.5 percentage points from 5 per cent to 4.5 per cent.