Interest rates slashed 

But it's good news - and bad news - from the Nationwide

 

Swindon-based Nationwide have reacted swiftly to yesterday's dramatic cut in interest rates by the Bank of England.

 

But it's good news for some - and not others.

 

The building society confirmed all existing borrowers with Nationwide tracker mortgages will benefit from an interest reduction of 1.5% beginning on 01 December (equivalent to a £125 saving on a £100,000 interest only mortgage) - but then announced they are withdrawing their entire tracker mortgage product range for new customers with immediate effect.

 

"This is an interim measure in order to maintain service standards for both new and existing borrowers and will be reviewed going forward," commented Nationwide's director of mortgages, Matthew Carter.

 

The society confirmed they will continue to track the Base Rate on existing mortgages for as long it remains on or above 2.75%.

 

The Bank of England slashed the Base Rate to 3% on Thursday in a bid to stave off what financial experts are describing as 'potentially a very long and damaging recession'.