Lloyds TSB and C&G make rate cut vow

Thursday, 08 January 2009 12:00

Lloyds TSB and Cheltenham & Gloucester (C&G) have vowed to pass on any base rate cut made today to its customers on variable and tracker mortgages.

They have promised that they will cut their variable mortgage rate, which is currently four per cent, by exactly the same percentage as the Bank of England does, if it slashes interest rates today.

Existing tracker customers would benefit from any cut from February 1st, they promised.

However, they are also planning to review all new fixed and tracker products if the base rate is cut today. This means temporarily withdrawing current deals at the end of the day.

Stephen Noakes, C&G marketing director, said: "Our tracker and variable customers are now on average paying £340 a month less than when base rate was at its peak 14 months ago.

"No matter how much is cut from the Bank of England base rate, we'll continue to pass it on to existing customers until product rates reach zero per cent."

The Bank of England is due to reveal its decision on the base rate at midday.

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