3 Dec

Lender makes pledge on mortgages

Lender makes pledge on mortgages

Lloyds TSB has said that both it and subsidiary Cheltenham & Gloucester (C&G) will pass on any base rate cut that is made by the Bank of England tomorrow.

The lender stated this would apply not only to standard variable rate deals, but also to trackers, as it did not have any lower limit on the interest that is charged on these.

In addition to this, products for new borrowers will be reviewed in the light of any reduction, with the existing range being withdrawn tonight in anticipation of a possible change.

C&G marketing director Stephen Noakes commented: "If we can make a saving on funding new mortgage products, we will look to pass this on."

A number of appeals have been made for a further base rate reduction this month to follow the 1.5 per cent cut in November and the 0.5 per cent trimming made in October.

The Association of Mortgage Intermediaries called today for a one per cent cut.
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