The Bank of England''s Monetary Policy Committee (MPC) has boosted mortgage borrowers by cutting the base rate of interest.

Following a meeting of MPC members today (April 10th), interest rates were cut by 0.25 percentage points.

That brought the rates down from 5.25 per cent to five per cent, a level not seen since January 2007.

Mortgage borrowers will be delighted by the news and will be hoping that their lenders will pass on the full reduction.

"Today''s rate cut shows that the Monetary Policy Committee recognises the potential risks to economic growth and the housing market," said Adrian Coles, director general of the Building Societies Association.

"With activity in the housing market cooling, this rate cut should make it easier for borrowers to meet their mortgage costs.

"The cut will be particularly welcomed by those taking out a new mortgage and those coming off a fixed-rate product," he continued.

The minutes from today''s MPC meeting will be published on April 23rd.