Lloyds TSB and C&G have today launched new tracker rate mortgages, with rates starting at 3.69 per cent.
Following the one per cent cut in the Bank of England base rate last week, the LIBOR – the rate used by lenders – has also fallen, by 0.4 per cent.
Before the rate decision was passed, Lloyds TSB
pledged to pass on any savings it could to mortgage customers, and has therefore cut the rates on its new range of tracker mortgages by up to 0.7 per cent.
The lowest rate is on the 75 per cent Loan to value (LTV) range, where a two year tracker with a 2.5 per cent fee has a rate of 3.69 per cent. Also in the 75 per cent LTV range are a two year deal at 4.09 per cent that carries a fee of £1995, another two year deal with a rate of £995 and a rate of 4.49 per cent, and a full term tracker mortgage with a rate of 4.45 per cent and a fee of £995.
In the new 60 per cent LTV tracker mortgage range are two two-year deals; one with a rate of 4.09 per cent and fee of £1995, another with a higher rate of 4.19 per cent but a lower fee - £995, and a full term tracker at 4.15 per cent with a £995 fee.
"Each tracker has the ‘All Weather' option, which allows customers to switch to a Lloyds TSB or C&G fixed rate product at any time during the deal without incurring early repayment charges," said Lloyds TSB mortgages
in a statement.
"Lloyds TSB was the first lender to announce it would pass on the new base rate cut in full to existing customers from 1 January. It reduced fixed rates for new customers straight after the base rate decision."
The news of Lloyds TSB's new tracker mortgages
comes as another big lender, Nationwide Building Society
, announces it is to pull is two year tracker mortgage deals, making them unavailable to new customers.
"Existing tracker borrowers are not affected by this change." said Nationwide. "They will benefit from the full one per cent fall in the Bank of England Base Rate as announced by the Society last week,"
Nationwide said it expects to re-launch a new tracker mortgage range next week.
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