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Abbey and Lloyds back on trackers

Abbey, Lloyds TSB and Alliance & Leicester have led the way in bringing back tracker mortgages after last week’s 1.5 per cent cut in bank base rate.

Almost every tracker was pulled from the market after the sharp cut, leading to fears that new trackers would be less competitive than standard variable rates.

But Abbey was the first to return with a new tracker range including a 60 per cent remortgage at 4.89 per cent and 75 per cent core mortgage at 4.99 per cent.

Lloyds TSB swiftly followed with its new Cheltenham & Gloucester “all weather” range, including a 60 per cent deal at 4.79 per cent and a 75 per tracker at 4.39 per cent.

Santander-owned A&L reintroduced a 60 per cent trac- ker at 4.49 per cent, with a flexible version at 4.89 per cent.

Hamptons managing director Jonathan Cornell says: “Lenders do not want everyone on the SVR as it means the lender cannot predict who is going to pay what and when and knowing that is crucial for the mortgage market to keep going.”

Mortgageforce technical manager Katie Tucker says: “These rates reflect the fact that lenders are doing the best they can at the moment and they fairly reflect Libor. It is good to see some far better mortgages.”

Nationwide says it is reviewing the market before it decides on any new products.

Prime Minster Gordon Brown put heavy pressure on lenders to pass on the cut and only HSBC and Barclays failed to pass on the full reduction.

Brown revealed this week the Government was to reform mortgage conduct of business rules to give the public “more reassurance” over repossessions and create guidance on small business lending.


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