Lloyds vows to pass interest rate on to mortgage customers

09 April 2009 / by Rebecca Sargent
Lloyds TSB has once again vowed to pass any interest rate cut that occurs today on to its mortgage customers.

The Bank of England's Monetary Policy committee (MPC) is expected to announce its latest base interest rate decision at midday today.

And, despite the general consensus being that rates will be held at 0.5 per cent, Lloyds TSB has said any cut will be passed on to customers of its mortgage arm, Cheltenham & Gloucester.

According to Lloyds TSB, since the base rate began to fall back in December 2007, it has cut its standard variable rate by the full 5.25 per cent, bringing savings of £460 a month for a typical repayment mortgage of £150,000.

Recent data from Moneyfacts.co.uk suggests that Lloyds TSB mortgages are among the few which have done that, revealing that since the last base rate cut to 0.5 per cent, only 11 lenders have passed the cut on in full.

Commenting, Michelle Slade, analyst at Moneyfacts.co.uk said: "With each base rate cut, the number of lenders passing the cut on in full to their SVR continues to dwindle. Many lenders have now cut rates as low as they are prepared to go.

"Even large mortgage lenders such as HSBC, NatWest, Northern Rock, RBS, Woolwich and Yorkshire BS have made no change to their SVR," she added.

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