Nationwide re-thinks again and lowers tracker rates 

Building society lowers rate 'floor' after Bank of England slashes Base Rate to 1.5%

 

The Swindon-based Nationwide Building Society has had a re-think on its tracker mortage rate.

The Bank of England slashed the Base Rate to 1.5% today, and Nationwide say they will now pass this cut onto its tracker mortages customers despite a previous decision only to reduce their rates to a minimum of 2.75%.

 

'For tracker mortgages reserved before 6 November 2008, we will be applying a 2% floor as a temporary concession' the Society said in a statement, which continued:

 

'Tracker mortgages reserved since 1 December 2008 have a floor of 1%, therefore these customers will receive the full cut of 0.50% to their tracker interest rate from 1 February 2009'

 

Earlier this week, Nationwide announced house prices have fallen by 15.9 per cent in the last twelve months according to their House Price Index.