Legend Financial and Tax Advisers

On 18 December 2025, the Bank of England reduced its base rate from 4% to 3.75%, the lowest level in nearly three years. The cut will lower mortgage and loan costs for households and businesses. HMRC late payment interest will fall from 8% to 7.75% from late December 2025 and January 2026. Savings accounts may pay lower interest as a result. This change affects borrowing, tax costs, and financial planning.14 Jan 2026Learn more