Following the 1 percentage point cut in the Bank of England base rate, LIBOR - used by lenders to fund trackers - has fallen by 0.4%. The lender pledged before the base rate decision to pass on any saving that could be made in funding new mortgages and prices in the new tracker range have been cut by as much as 0.7%.
New tracker rates include:
60% LTV range
2 year ‘All Weather' tracker at 4.09% (BBR +2.09), £1995 fee
2 year ‘All Weather' tracker at 4.19% (BBR +2.19), £995 fee
Full term ‘All Weather' tracker at 4.15% (BBR +2.15), £995 fee
75% LTV range
2 year ‘All Weather' tracker at 4.09% (BBR +2.09), £1995 fee - loans up to £250k only
2 year ‘All Weather' tracker at 3.69% (BBR +1.69), 2.5% fee
2 year ‘All Weather' tracker at 4.49% (BBR +2.49), £995 fee
Full term ‘All Weather' tracker at 4.45% (BBR +2.45) £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.
Lloyds TSB was the first lender to announce it would pass on the base rate cut in full to existing customers from 1 January. The lender reduced fixed rates for new customers straight after the base rate decision, it says.
