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UK mortgage lenders have started to announce new mortgage deals after the Bank of England’s surprise rate cut to 3%.

Three mortage lenders will be lauching tracker deals for new borrowers, but are widening the margin between the rate they charge and the Bank’s rate.

Most tracker mortgages are linked to the Bank rate and that rate is  expected to fall more in the  coming months.

Latest figures show that many new mortgages have been tracker deals, rather than fixed-rate.

Almost all tracker mortgages for new borrowers were withdrawn last week when the bank slashed its rates

Cheltenham & Gloucester, Abbey and Alliance & Leicester all started marketing new tracker deals to new customers.

But would be borrowers face having to find a bigger deposits for some mortgages, while the margin between the interest rate charged and the Bank rate was wider than previous deals.

For example, Abbey is offering a two-year tracker deal for those paying a 25% deposit, at an interest rate of 4.99%. This is 1.99% above the Bank rate, compared with 1.29% on a similar deal offered at the start of last week.

Brokers had been recommending a number of tracker deals to customers, predicting that the Bank rate would fall.

Aaron Strutt, of Chase de Vere Mortgage Management, said that this advice generally still stood.

“We are expecting the Bank rate to fall further. Lenders will hopefully be introducing more tracker deals, but borrowers should be careful regarding the collars,” he said.

“Lenders are generally offering trackers new deals 2% above the Bank rate. If the Bank rate goes down to 2% or 1%, this is still going to offer fantastic value for money.”

But he criticised lenders for “holding back” on the choice of tracker mortgages available at a time when there was high demand for these types of deals from customers.

Latest figures from the Council of Mortgage Lenders showed that the proportion of new tracker mortgage deals and standard variable rate (SVR) mortgages granted in September grew, while the proportion of fixed-rate deals reduced.