Some homeowners could see their monthly mortgage payments drop as low as 8p-a-month this week.
The Bank of England is expected to cut interest rates to just 1 per cent on Thursday, bringing a windfall to those with interest-only tracker loans.
If it does, Cheltenham & Gloucester customers who took out a deal at 1.01 percentage points below the Bank’s base rate will be paying no interest at all.
For technical reasons, they will still have to make payments – 8p a month for a £100,000 loan – but the money will be refunded.
Those with repayment mortgages will need to pay around £333 a month on the same-sized loan.