The Bank of England has battered down interest rates from 0.75% to 0.25% in a response to the coronavirus outbreak.

It’s anticipated that the UK economy could shrink over the coming months due to the economic ramifications of the COVID-19 virus that’s sending savage shockwaves across the world.

We’re likely to see UK spending dramatically decrease during this period of global fear and uncertainty as fewer people are inclined to travel and move freely to work or public gatherings.

As fewer people travel and more significant sporting and cultural events are cancelled across the UK, local businesses which normally thrive from regular footfall, will experience hard-hitting losses in their revenue.

In an attempt to strengthen the cash flow of UK businesses and increase their availability of finance, the Bank of England has lowered the UK base rate to its lowest level since 2016 to 0.25%.

But what will this sudden emergency cut of interest rates mean to investors?

Unfortunately, this is bad news for those of you with Cash ISAs. Having endured dismal returns for what must seem like an eternity, these interest rate cuts are going to exasperate and prolong this woeful run of form for your hard-earned savings.

We’ve also seen the recent implications of the coronavirus upon the stock market, with oil prices plummeting and causing the FTSE 100 to drop like a stone.

The stock market has more ups and downs than a roller coaster, which means stocks and shares ISAs are not for the faint hearted, nor will they be in hot demand right now.

Property-backed Innovative Finance ISAs, on the other hand, offer an opportunity to earn impressive returns without being subjected to stock market volatility, while operating outside of the Bank of England’s interest rate slump.

Alternatively, you could invest in property-backed peer-to-peer development projects which also offer attractive interest rates of upto 10% p.a.

Or you could invest via an auto-invest model which diversifies your investment funds across multiple peer-to-peer loans which are secured against UK property and earn upto 7% p.a.

With these investments you are, in effect, the bank with the same type of security and the right to be paid out first from sale proceeds.

If you currently have a cash ISA and you’re growing increasingly tired of those same-old lousy returns then you can transfer it for free into a property-backed House Crowd Innovative Finance ISA today.