Nationwide to reduce Base Mortgage Rate

Following the decision by the Monetary Policy Committee (MPC) to cut the Bank of England Base Rate, Nationwide Building Society today announces that it will decrease its Base Mortgage Rate (BMR) from 3.00% to 2.50% from 1 April 2009.

The standard variable rates of the Derbyshire and Cheshire building societies will also fall to 2.50% from 1 April 2009.

Andy McQueen, Nationwide savings and mortgages director, said: "Nationwide's BMR is already one of the lowest amongst major high street lenders and this move will maintain that position, as well as reducing monthly payments for a borrower with a £150,000 interest only mortgage by £62 a month."

Borrowers who took out a Nationwide tracker mortgage from 1 March 2009 will also benefit from a 0.50% cut. A borrower with a £150,000 interest only mortgage on Nationwide's two year tracker will see a reduction of £62 per month as a result.