Lloyds TSB launches Tracker Mortgage at 4.89 percent

Although Lloyds TSB (LON:LLOY) did pass on the full 1.5 percent base rate to its existing customers, if you are a new customer looking for a tracker mortgage then you will not benefit from the full 1.5 percent cut, Lloyds TSB has followed the lead of Abbey and hiked up the amount it charges above the base rate on its tracker mortgages.

Lloyds TSB who also own Cheltenham & Gloucester increased its tracker margin from between 0.6 percent and 0.7 percent above the base rate resulting in new customers only benefiting from 0.9 percent or 0.8 percent of the base interest rate cut.

Lloyds withdrew its tracker products last Wednesday just a day before the Monetary Policy Committee cut the base interest rate. As a result of the re-launched products Lloyds are now offering a 2-year tracker product for 1.89 percent above the base rate which is currently at 3 percent making the rate you pay 4.89 percent, this comes with a £995 arrangement fee and you will need a 60 percent LTV.

If you don’t have 40 percent deposit to put down, you can get a comparable tracker deal with a 25 percent deposit at 2.09 percent over the base rate which will give you an interest rate of 5.09 percent.

Source: ukmsn