Lloyds TSB and C&G cut fixed rate mortgage products

Lloyds TSB and Cheltenham & Gloucester will be the first lender to cut fixed rate mortgage products for new customers following yesterday's Bank of England Base Rate reduction. The news follows a commitment reiterated on Wednesday to pass on the full Base Rate cut to its existing tracker and standard variable rate customers.

The new fixed rate range, available from Tuesday, reflects further falls in swaps since yesterday's Base Rate announcement. Rates will start as low as 4.89%.

Stephen Noakes, C&G Marketing Director, said "We want to do all we can to help our customers in these difficult times by passing on the benefits of yesterday's rate cut. Swap rates, which have steadily reduced in recent weeks, have now dropped further so we will pass on these savings. LIBOR also dropped today but we need to see where it settles before introducing a lower priced tracker range. We hope to do this early next week."