Lloyds TSB, Skipton, C&G to pass on today's rate cut

Today, the Bank of England has reduced the interest rate to 0.5 per cent, and Skipton Building Society, Lloyds TSB (LON:LLOY) and its mortgage arm C&G (Cheltenham and Gloucester) have all said that they will pass on the rate cut to their existing customers who have a mortgage with them.

Those customers who have a Lloyds tracker and variable rate mortgage will benefit from the rate cut, which is currently at 3 per cent. These will now fall accordingly, and as its tracker mortgage has no collar it could be reduced to zero.

C&G commercial director, Stephen Noakes said that if the rate falls then they would also pass on the rate cut. The same goes for Skipton Building Society, it is thought that with this rate cut, 15,000 of their borrowers will see a reduction in their monthly mortgage repayments.

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