Small businesses with mortgages on commercial property will benefit from a full rate cut, the Royal Bank of Scotland and Lloyds TSB have said.
Both agreed to pass on the Bank of England’s one point cut in full to their business customers.
“Today we are carrying out the pledge made in our new small business Charter to pass on in full any base rate reductions until the end of 2009,” said John Maltby of Lloyds TSB.
The reduction will apply to small business customers with variable rate loans and overdrafts, but not to regular consumers.
Gordon Brown told GMTV he is keen to pursue lenders so they follow the Bank’s lead.
“Remember last time there was a cut, we had to speak to them before it was passed on and we will be speaking to them again,” he commented.
The European Central Bank has also dropped its rates, with a three-quarter-point cut.