December's move slashed interest rates by one percentage point to just 2% - the lowest for 57 years - and followed the massive 1.5% cut in November. And now we’ve had two more cuts to 1% - the lowest in the Bank of England’s 315-year history.

Most mortgage lenders wait until the beginning of the following month to update the rates for existing borrowers so March could mean another welcome drop in mortgage payments for many borrowers with variable rate mortgages.

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YOUR HOME MAY BE REPOSSESSED IF YOU DO NOT KEEP UP REPAYMENTS ON YOUR MORTGAGE

These savings will come at the perfect time for many people trying to get their finances in order in these difficult times. If your mortgage payment is coming down, there are plenty of ways to put the saving to good use. A sensible place to start is by paying off any credit card debts but whatever needs addressing it's worth remembering that when paying off debt, it’s always good to tackle the most expensive first.

Tempting as it is to pocket the saving, another option is to make regular overpayments on your mortgage. If you keep your monthly mortgage payments at the level they were before the rate cut, you are able to overpay and potentially save thousands of pounds in interest.

With property prices continuing to fall, overpaying on your mortgage also helps to maintain the equity you have in your home. This will help you to get the best mortgage deal possible when the time comes to review your rate.

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