Lloyds TSB and C&G to Pass on Any Rate Cut to Applicable Mortgage Customers

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Lloyds TSB and Cheltenham & Gloucester will pass on any base rate cut to existing variable and tracker mortgage customers.

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If the Bank of England cuts the base rate on Thursday; the mortgage lender will automatically cut its standard variable mortgage rate - currently at 2.5 per cent - by the same amount on 1 May.

Existing tracker mortgage customers will also benefit from any rate cut from 1 May. The lender does not have a collar on its tracker mortgages so product rates have the potential to go to 0% if base rate continues to fall.

Since base rate began to fall in December 2007, the lender has cut its standard variable mortgage rate by the full 5.25 per cent. On a typical repayment mortgage of £150,000, this represents a monthly saving of over £460. If rates are cut by 0.5 per cent again on Thursday, customers with tracker and variable rate mortgages are set to make a further monthly saving of £37.15.

Should base rate be cut, the lender will review wholesale funding costs to see if any saving can be made on new tracker and fixed rate mortgages.

For more information:
Eleanor Ross
Tel: 020 7356 1714

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