Lloyds and C&G promise to pass on base rate cut - Mortgages - News - Moneyfacts


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Lloyds and C&G promise to pass on base rate cut

Lloyds and C&G promise to pass on base rate cut

Category: Mortgages

Updated: 04/12/2008
First Published: 03/12/2008

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Lloyds TSB and Cheltenham & Gloucester have promised to pass on any base rate cut in full to their existing variable and tracker customers.

If the Bank of England decides to reduce the base rate when it meets on 4 December, as is widely expected to happen, the mortgage lender has said it will cut its standard variable mortgage rate by the same amount on 1 January.

The lender has also pledged to review all new fixed and tracker products if a cut occurs, before introducing lower-priced products as soon as possible.

"As soon as we know the impact of the base rate decision on wholesale funding costs, we will launch our new fixed and tracker rates," said Stephen Noakes, C&G marketing director. "If we can make a saving on funding new mortgage products, we will look to pass this on."

Lloyds TSB and Cheltenham & Gloucester were the first to announce they would pass on the full 1.5% rate cut back in November.

If interest rates are cut by 0.5%, their variable rate customers will make a further monthly saving of £43.14. If rates are cut by 1%, the additional monthly saving will be £85.13.

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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