If the Bank of England cut the base rate on Thursday; the mortgage lender will automatically cut its standard variable mortgage rate - currently at 3.5 per cent - by the same amount on 1 March.
All existing tracker customers will also benefit from any rate cut from 1 March. The lender does not have a collar on its trackers so product rates have the potential to go as low as 0% if base rate continues to fall*.
Since base rate began to fall in December 2007, the lender has cut its standard variable rate by the full 4.25 per cent. On a typical repayment mortgage of £150,000, this represents a monthly saving of over £380. If rates are cut by 0.5 per cent again on Thursday, tracker and variable rate customers are set to make a further monthly saving of £40.82.
Stephen Noakes, C&G marketing director, said: "With many homeowners benefiting from monthly mortgage savings we have seen thousands of customers opting to overpay. If base rate is cut again on Thursday we expect to see this trend continue. With house prices falling overpayment is a wise decision, as not only will it reduce the term or your loan, but it can also help protect the equity in your home."
The lender has received over 35,000 requests from customers to set up an overpayment since the dramatic 1.5 per cent base rate cut in November 2008.
Should base rate be cut, the lender will review all fixed and tracker products before introducing new rates as soon as possible. As part of this process, all current trackers will be temporarily withdrawn from close of play today.
Stephen Noakes continues: "We will look to introduce our new tracker and fixed rates as soon as we can see the effect of Thursday's decision on the wholesale funding markets. If there is an opportunity to make savings on funding this will be reflected in our new rates"
