Lloyds TSB and C&G cut mortgage rates

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 April 1st, Lloyds TSB will automatically cut its standard variable mortgage rate by the full 0.5 per cent, to a new rate of 2.5 per cent.

Because the lender has no collar on its tracker products, all existing tracker customers will also benefit from the rate cut from 1st April. Following the base rate cut the lender is also reviewing wholesale funding costs to see if any saving can be made on new fixed and tracker products.

Stephen Noakes, C&G commercial director, said; "There is no better time than now to lock into a fixed rate. Wholesale funding is forward looking and already creeping up on the expectation interest rates will inevitably rise over time.

"Give or take a little movement, we're at the bottom of the market for fixed rates so homeowners should take advantage by locking in for as long as possible. Even those who may currently be sat on a record low SVR should weigh up the immediate bonus it offers versus the longer term savings a five or ten year fix will secure."