Lloyds TSB and C&G cut mortgage rate

Lloyds TSB and Cheltenham & Gloucester will pass on today's base rate cut to existing variable and tracker customers, following the decision by the Bank of England to cut base rate by 0.5 per cent.

On March 1st, Lloyds TSB will automatically cut its standard variable mortgage rate by the full 0.5 per cent, to a new rate of 3.0 per cent. The bank was the only lender to commit to passing on any rate cut in full in advance of today's decision.

Because the lender has no collar on its tracker products, all existing tracker customers will also benefit from the rate cut from 1st March. Following the base rate cut, the lender is also reviewing its fixed and tracker rates and will launch new prices next week.

Stephen Noakes, C&G marketing director, said; "Tracker and variable customers are now hundreds of pounds a month better off and many are using this cash to overpay their mortgage. Since November's huge 1.5 per cent base rate cut we've seen 35,000 customers set up a regular overpayment."

Details on how to set up an overpayment can be found at cheltglos.co.uk