THOUSANDS of hard-up East Lancashire home owners are breathing a sigh of relief as they feel the benefit of fresh interest rate cuts.

From May 1, Nationwide borrowers with a standard repayment mortgage of £30,000 will save £8 a month.

And Yorkshire Building Society borrowers are also quids in after it pledged to follow suit.

Maria Lees of Beardwood, Blackburn, has already decided what to do with her extra cash. "I think the reductions are brilliant. My family stand to make substantial savings which will come in very handy as we've just moved house."

The new cuts mean homeowners will cash in on the lowest lending rates for 31 years.

Nationwide spokesperson Steve Blore said: "This is the lowest standard variable rate available in the high street since 1965 the Beatles were number one with I Feel Fine, and mini skirts hit the fashion scene."

But the news has not been greeted with as much enthusiasm by savers and those who opted for a fixed rate mortgage.

Stuart Gregory, from Oswaldtwistle, forecast that most people would keep hold of their mortgage savings. He said: "I think people are nervous about mortgage payments and are unlikely to go on a spending spree. Most people will need it to pay for their increased council tax bills." Frank Mitchell and fiancee Anne Tierney, of Redlam, Blackburn, have missed out on the savings. "We both have fixed rate mortgages so the news doesn't affect us, unfortunately. But even so I'd much rather have stability over a set number of years than having to worry about rates fluctuating wildly," said Mr Mitchell.

And retired Anne Pickup, of Lammack, Blackburn, said she wished the rates were going the same way for savers.

She said: "Because I no longer work it's even more important that I get the most out of the money I have in the bank or building society. It may be good news for young people starting out - but it's not for me."

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