Lenders to implement mortgage rate cuts

Lloyds TSB and its subsidiary Cheltenham & Gloucester have announced a reduction in their mortgage rates following the Bank of England’s recent base rate cut.

From today, fixed rates will be reduced by up to 0.2 per cent, while a new tracker mortgage range is to be introduced tomorrow with rates up to 0.3 per cent lower.

The move means interest rates fixed-rate deals will start at 3.69 per cent for a two-year option at 75 per cent loan-to-value, while tracker loans will carry rates starting at 3.39 per cent.

Marketing director for Cheltenham & Gloucester Stephen Noakes explained that an increasing number of customers are looking to take out long-term fixed-rate deals.

“We’ve reached a stage where mortgage rates are now well below their ten-year average of 5.84 per cent,” he added, news which may be welcomed by those looking to switch their mortgage as part of a debt management plan.

The move follows a similar announcement from Halifax, which revealed that its tracker mortgage customers will receive the full benefit of the Bank’s 0.5 per cent cut.

By Tom Musk