Nationwide re-think helps tracker mortgage holders
Story update: 04 Dec 11.02pm
Swindon-based society scrap 2.75% floor on tracker mortgages
Nationwide has this evening announced that it will not be enforcing its 2.75% floor on its Tracker mortgage products after today's surprise interest rate cut by the bank of England to 2%.
The Society had confirmed last month that they will continue to track the Base Rate on existing mortgages for as long it remains on or above 2.75% - but not below.
But today's re-think is designed 'to support borrowers in the current exceptional market conditions' according to the Swindon-based Society, the second-biggest mortgage lender in the UK.
The decision means that all Tracker mortgage customers will benefit from the full 1% fall in the Base Rate.
Nationwide are also decreasing itheir Base Mortgage Rate (BMR) by 0.69% to 4.00% from 1 January 2009.
No joy yet for Nationwide mortgage holders
04 Dec 2008 5.08pm
The Swindon-based Nationwide Building Society are considering their options after today's dramatic cut in interest rates by the Bank of England.
A statement on their website reads:
The Bank of Englandís Monetary Policy Committee have announced a 1% decrease in the base rate to 2%.
Nationwide will monitor the reaction of the market to this rate decrease and make a decision in due course.
Our priority is to ensure a strong competitive position in both the mortgage and savings markets.
HSBC, Lloyds TSB, Cheltenham and Gloucester and Bristol & West have all announced they will pass on the one percentage point cut in full with immediate effect.
The society confirmed last month that they will continue to track the Base Rate on existing mortgages for as long it remains on or above 2.75%. Today's cut took the Base Rate below this figure.