Lloyds TSB promise to pass full interest rate cut on

Lloyds TSB (LON:LLOY) have promised that they will pass on any interest rate cut the Bank of England Monetary Policy Committee will make tomorrow to its existing customers with tracker and variable mortgages.

Lloyds TSB which is presently in the process of merging with HBOS pledged back in 2002 that its variable rates would never be more than 2 percent above the banks of England base rate.

The Bank of England is widely expected to cut the base interest rate again tomorrow, by as much as 1 percent, which would take the rate down to the lowest level it has been since 1951 at 2 percent.

Lloyds have said that they will pass on any rate cut on January 1, 2009, the bank also said they will pass on the cut to new borrowers who take out tracker or fixed rate deals within reason.

Source: BBC

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