Nationwide to decrease mortgage rates

Nationwide Building Society today announces that it will decrease its Base Mortgage Rate (BMR) from 1 January 2008.

The BMR will be decreased by 0.25% from 7.24% to 6.99% leaving it around 0.50% lower than the standard variable rates of most other major high street lenders assuming that they also decrease their SVRs in line with the Base Rate. This follows the decision by the Bank of England’s Monetary Policy Committee to decrease the Base Rate by 0.25%. Savings rates are under review and any changes to these rates will be announced in due course.

Assuming other major lenders decrease their SVRs in line with the decrease in the Base Rate, the savings a customer would make with Nationwide on a £100,000 mortgage will be up to £12,000 over a 25-year term.

Tracker mortgages will move in line with the Bank of England Base Rate and this change will be effective from 1 January 2008.

A range of flexible features are available on all new Nationwide mortgages, offering the borrower the ability to overpay, underpay or take a payment holiday. Nationwide does not charge a Mortgage Indemnity Guarantee (MIG) or fees for high percentage borrowing.