The first cut in interest rates in seven years has set a new record low level of 0.25% with the UK economy contracting at its fastest rate since the financial crisis.

The attempt to boost the economy will have an impact on mortgages, savings, business spending, pensions, travel money and investments.

Here's how it could affect you.

Those looking to take out a mortgage are the big winners from the interest rates cut, while those who already have one will only benefit depending on their type of deal.

People on tracker mortgages (mortgages that directly track the Bank of England base rate) will benefit from the cut immediately, seeing their monthly mortgage repayments fall.

The base mortgage rates, which are set 2% above the Bank base rate, will thus see their repayments drop from 2.5% to 2.25%.

Those with interest-only mortgages, which have largely vanished since the 2008 financial crash, will also enjoy notably lower rates of repayments.

However, those on fixed-rate deals, which are now the vast majority of new loans, will not benefit from the reduction until their current deal expires.

But those about to buy should see some enticing deals on the market, with new fixed-rate deals being offered.

The rate cut is hoped to boost confidence among buyers which could in turn settle a house price market that has been left more than jittery post-Brexit.

Though some buyers may temporarily halt purchases while they renegotiate a more attractive fixed-rate deal.

Traditionally base rate cuts by the Bank of England should mean cheaper borrowing rates for businesses, with the aim of encouraging them to take out reduced loans to increase investments and hire more staff.

This impact has been noticed by money experts to have quelled following the financial crisis, with less demand from firms. It remains to be seen if the latest rates cut will boost business confidence.

Savings rates are likely to fall to new lows, which is only bad news for Britain's long-suffering savers.

The interest rates cut in March 2009 led to seven years of small returns on savings and today's historically low cut only compounds their misery.

Lenders have already withdrawn their best value savings deals from the market.

There is also the longer-term threat of lender charges on credit balances should the Bank of England go on to turn its base rate negative.

Last week NatWest warned its customers that charges were an option it may consider imposing, which would be expected to have a domino effect on other lenders.

The falling base rate means the interest rates charged on government borrowing tends to drop, which can impact company pension schemes.

Interest rates could cause bigger pension deficits, which would impact on companies that offer final salary pensions.

Those whose pensions are invested in shares and bonds could see a benefit, though, as these generate higher returns when rates are cut.

Cuts in interest rates can lead to foreign investors choosing to invest in other markets which offer higher returns, which will weaken the pound.

So if you are set to go on holiday it may be time to change your currency before the pound devalues further.

However, the weak pound is likely to boost tourism in the UK.

Share prices usually receive a boost from the cuts in the Bank of England base rates, so if your savings are held in stocks and shares you could be in line to benefit.

It may be tempered this time round by the market having already responded to an announcement forewarned by Governor Mark Carney after the Brexit vote. The effect of the cut may therefore not be seen directly in response.