Nationwide Building Society is today announcing that it will pass on the full 0.50% reduction in the Bank of England Bank Rate.
As a result, Nationwide’s Base Mortgage Rate (BMR) and Standard Mortgage Rate (SMR) will reduce by 0.50% to 2.25% and 3.74% respectively.
These new rates, which will come into effect on 1 April, will ensure the Society continues to remain competitive in the mortgage market. The Society’s BMR remains one of the lowest revert to rates in the market, with estimates suggesting that compared to the standard variable rate charged on average by other major lenders, around 281,000 BMR borrowers have benefitted from a saving of around £500 per year.
Borrowers on a tracker mortgage will also see their rates reduce by 0.50%.
The Society is reviewing its savings rates and will make an announcement on the impact of the Bank Rate change on its savings range in due course.
Sara Bennison, Nationwide’s Chief Marketing Officer, said: “This announcement gives borrowers clarity about what the Bank Rate reduction will mean for them. As a result of these changes, we will remain one of the most competitive high street lenders.
“We understand it continues to be a tough time for savers and we are currently considering what the impact of the Bank Rate change will be on our variable rate accounts. We will announce any changes to our savers in due course, while those signed up to our SavingsWatch service will also receive notification about what any changes mean for them.
“As the Government looks for ways to support people at a difficult time for the UK, we are keen to lend our weight. We have outlined a range of considered support options for members financially impacted by coronavirus, including mortgage payment holidays. By passing on the rate reduction in full, from 1 April 2020, we also hope to minimise mortgage costs for our members during this difficult period.”
