Lloyds TSB and Woolwich increase Tracker mortgage rate

Lloyds TSB who did not pass on the Bank of England base rate cut last week onto its Tracker Mortgage rates has now increased some of its Tracker deals by as much as 0.5 percent this would mean that some of the Lloyds TSB Tracker rates carry mortgage rates 0.8 percent higher than they would have been if they had just followed the bank of England base rate cut on half a percent.

However, Woolwich building Society did pass on the base rate reduction and cut its Tracker rates but has now increased lifetime and offset rates by 0.2 percent saying that they did it because influx of requests after the cut had been “unsustainable”.

Head of Mortgages at Woolwich Andy Gray said: “We are seeing unsustainable flows of customers to the Woolwich since changes by other lenders left us with some of the only competitively priced mortgages in the market” to the news agency.

August 2008 saw new mortgages decline 60 percent from the same time last year according to the Council of Mortgage Lenders.

Source: londonstockexchange