From This is Money:
Just hours after the Bank of England announced the 0.5% cut in a combined move with other central banks, Cheltenham & Gloucester and its parent bank Lloyds TSB, withdrew small deposit tracker mortgages, which are linked to the bank rate.
Both the deals were available to those with 10% deposits and would have been most attractive to first-time buyers looking to benefit from yesterday’s cut and speculation that interest rates will fall again.
C&G and Lloyds said they had no immediate plans to offer new deals for those with smaller deposits and claimed the decision to remove the deals was taken before yesterday’s shock rate cut and that first-time buyers typically preferred fixed rate deals.
Tracker mortgages become more attractive to homeowners as the Bank of England reduces the cost of borrowing, as their repayments fall directly in line with any cuts.
Other lenders are reported to be considering similar moves to reduce their tracker ranges.
While C&G and Lloyds’ decision to…