All existing tracker customers will also benefit from any rate cut from 1 February. The lender does not have a collar on its trackers so product rates have the potential to go as low as 0 per cent if base rate continues to fall.
If base rate is cut, the lender will also review all new fixed and tracker products before introducing new rates as soon as possible. As part of this process, all new trackers will be temporarily withdrawn.
Since base rate was at its peak in November 2007 at 5.75 per cent, the lender has cut its standard variable rate by the full 3.75 per cent. On a typical repayment mortgage of £150,000, this represents a monthly saving of £341.23
If base rate is cut by 0.5 percentage points on Thursday, Lloyds TSB and C&G variable rate customers will make a further monthly saving of £40.82. If rates are cut by 1.00 percentage point, the monthly saving will be £80.44.
Stephen Noakes, C&G marketing director, said; "Our tracker and variable customers are now on average paying £340 a month less than when base rate was at its peak fourteen months ago. No matter how much is cut from the Bank of England base rate, we'll continue to pass it on to existing customers until product rates reach 0 per cent.
"As soon as we know the impact of the base rate decision on wholesale funding costs, we will launch our new fixed and tracker rates. If we can make a saving on funding new mortgage products, we will look to pass this on."
