Nationwide passes on mortgage rate cut in full

Following the decision by the Monetary Policy Committee (MPC) to cut the Bank of England Base Rate, Nationwide Building Society announces that it will decrease its Base Mortgage Rate (BMR) from 4.00% to 3.50% from 1 February 2009.

Nationwide's BMR is already the lowest amongst high street lenders and this move will maintain that position as well as reduce monthly payments for a borrower with a £150,000 interest only mortgage by £62 a month. The standard variable rates of the Derbyshire and Cheshire building societies will also fall to 3.50% from 1 February 2009.

As Nationwide holds its guarantee that BMR will never be more than 2% above the Bank of England Base Rate, any further rate reductions will also be passed on by the Society in full.

Nationwide is one of a few lenders to have this type of guarantee in place.