| Nationwide announces interest rate cut |
|
|
| Written by Gary Howes | |
| Thursday, 06 November 2008 | |
|
Nationwide follows Lloyds TSB in passing on benefits of MPC decision. Nationwide Building Society (LON:POB) has confirmed that all existing borrowers with tracker mortgages will benefit from a reduction in interest rate of 1.5% from 1 December following the cut in the Base Rate announced earlier today. Customers with a £100,000 interest only mortgage will save £125 per month. Existing tracker deals will continue to track the Base Rate for as long as it remains on or above 2.75%.Today Lloyds TSB announced that it would meet the Bank of England rate cut to the full amount, as such their lender’s SVMR will be cut down from 6.5% to 5%. The move was mirrored by Cheltenham & Gloucester. As an interim measure Nationwide is withdrawing its tracker mortgage product range from sale at close of business today, 6 November 2008, while the Society takes stock of changing market conditions. Nationwide continues to offer a range of fixed rate mortgage products and these products are not affected by this announcement. Matthew Carter, director of mortgages at Nationwide, said: “We are pleased that all existing borrowers with tracker mortgages will benefit from a reduction in their monthly mortgage payments. “In light of recent announcements by a number of other competitors that they have withdrawn their full tracker range, we are withdrawing our tracker product range from sale at close of play today. This is an interim measure in order to maintain service standards for both new and existing borrowers and will be reviewed going forward. It is a prudent measure in the current climate.” Following the change in the Base Rate, the Society is currently monitoring the reaction of the market and will make a decision regarding the BMR that ensures it retains its strong competitive position in both the mortgage and savings markets.
|
Subscribe to our weekly newsletter for top jobs, news and more
Get the latest senior finance job roles, news, features, industry moves and opinion delivered direct to your inbox every week. Sign up here.
Digg it! 
del.icio.us 
Newsvine 
Reddit 
Stumble It! 
As the economy hits the most significant downward cycle in 50 years, finance directors must take stock of their companies' remuneration and compensation packages. 