Cheltenham & Gloucester (C&G) has withdrawn its tracker range after other lenders moved to re-price tracker products.
The lender, part of Lloyds TSB, also confirmed it will pass on any benefits from today’s expected rate cut by the Bank of England.
After a number of lenders increased the cost of tracker mortgages, C&G decided to withdraw its own products late last night.
The decision was taken in order to manage business volumes and keep prices in line with the rest of the market, C&G says. Its new trackers will be introduced next week.
Today, C&G has cut rates on some fixed rate products by up to 0.3% to reflect lower funding costs in wholesale money markets.
“We always try to offer a mortgage range that is priced competitively and reflects the cost of funding,” says Stephen Noakes, C&G’s marketing director.
“We’ve seen some easing in swap rates recently in anticipation of a base rate cut and are able to pass this on. However, LIBOR remains well above base rate and our competitors have already changed their trackers to reflect this.”
Furthermore, the lender confirmed it would be passing on the full benefit of an expected interest rate cut to its variable rate customers. If the Bank of England cuts rates by 0.5% then C&G has promised to reduce its standard variable rate from 6.5% to 6%.
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