|
Lenders in base rate mortgage pledge
3 December 2008 15:17
Lloyds TSB and Cheltenham and Gloucester have vowed to pass on a cut in the base lending rate to their mortgage customers.
The Bank of England's monetary policy committee will make its decision on the base level tomorrow (December 4th), following last month's sweeping 150 basis points reduction.
All customers with a standard variable rate product, which currently stand at five per cent, and tracker mortgage holders will benefit from the new rate from January 1st next year.
Marketing director of Cheltenham and Gloucester, Stephen Noakes, said that regardless of the size of the cut, it would pass on the benefits in full to its existing customers.
As soon as wholesale funding costs have been calculated, Mr Noakes added, the lender would launch its new fixed and tracker rates, while also looking to make savings on new mortgage products.
According to the company, if interest rates are cut by one per cent tomorrow, customers with a variable rate mortgage will make a monthly saving of £85.13.
|
