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Abbey and Lloyds reintroduce tracker and fixed rates mortgages after base rate cut

12 November 2008 / by Rachael Stiles
Lloyds TSB and Cheltenham & Gloucester will launch its revised range of tracker mortgages today, and Abbey has already cut rates on its two year fixed rate mortgages and reintroduced its tracker mortgages, in line with the base rate.

Last week saw a number of lenders withdraw mortgages from their product range when the Bank of England base rate was cut by 1.5 per cent.

Lloyds TSB and it's Cheltenham & Gloucester mortgage arm are offering new rates on its range of 60 per cent and 75 per cent loan to value tracker mortgages, known as their 'All Weather' trackers, allowing customers to switch to a Lloyds TSB or C&G fixed rate deal at any time without incurring a charge.

Abbey, meanwhile, has reintroduced its 60, 70, and 75 per cent loan to value two year fixed rate mortgages having cut one per cent from their cost.

Yesterday also saw the re-entry into the market of the two year Abbey tracker rate mortgages range which have a collar on the interest rate of just 0.0001 per cent, so if the base rate fell to zero, that's the lowest customers would be able to pay for their home loan.

"The base rate cut has eased the pressure on swap rates, particularly two-year swaps, which means we can significantly cut rates on our two-year fixed rate mortgage range." commented Nici Audhlam-Gardiner, director of Abbey mortgages. "In addition we're the first lender to reintroduce a range of two-year base rate trackers, which will be on sale from Wednesday morning."

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