Nationwide to decrease mortgage rates by 0.25%

Nationwide Building Society today announces that it will decrease its Base Mortgage Rate (BMR) from 1 March 2008 following a decision by the MPC to cut the Base Rate.

The BMR will be decreased by 0.25% from 6.99% to 6.74% leaving it around 0.50% lower than the standard variable rates (SVR’s) of most other major high street lenders assuming that they also decrease their SVRs in line with the Base Rate. 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 could be more than £12,000 over a 25-year term.

Existing tracker mortgages will decrease by 0.25%, moving in line with the Bank of England Base Rate. This change will be effective from 1 March 2008.

A range of flexible features are available on all Nationwide mortgages, offering the borrower the ability to overpay, underpay and take a payment holidays. Nationwide does not impose a higher lending charge for high percentage borrowing.