Nationwide announces interest rate changes

Nationwide has announced it will pass on a further 0.15% reduction to its existing variable rate borrowers, reflecting the recent back-to-back cuts made to the Bank of England (BoE) base rate.

The latest announcement follows on from the society confirming it would pass on the initial 0.50% reduction to borrowers from 1 April.

The BoE cut its base interest rate from 0.75% down to 0.25% on 11 March in an attempt to help free up billions of pounds of extra lending power to help banks support firms, before the base rate was slashed again on 19 March to its current historic low of 0.1%.
 
Nationwide announced that its base mortgage rate (BMR) and standard mortgage rate (SMR) will reduce by an additional 0.15% to 2.10% and 3.59% respectively, with these new rates coming into effect on 15 April. Borrowers on an existing tracker rate mortgage will also see their rates reduce by a further 0.15%.
  
Nationwide director of mortgages, Henry Jordan, said: “With a second cut in interest rates in just over a week, it is important that borrowers have clarity about what this second change means for them and the future interest and payments on their mortgages.

“By passing on this latest rate reduction in full, from 15 April, we hope to minimise mortgage costs for our members during this difficult period.”
 
The latest announcement follows on from the society outlining a range of support options for members financially impacted by the coronavirus pandemic – including self-certified mortgage payment breaks.
 
“We understand the concern our members are feeling at the moment, including homeowners,” Jordan added. “As a member-owned organisation, we want to ensure we are able to continue offering our usual high standard of service at the same time as helping all our members through what is an uncertain period.   
 
“As such, we recently announced a range of support options for members financially impacted by coronavirus, including mortgage payment holidays, which can now be applied for online. While we continue to work hard with valuation and conveyancing partners to progress applications, we ask members and brokers to bear with us during what is an unprecedented period.”
 
Furthermore, from today, Nationwide said it will also be re-introducing two-year tracker mortgages to its range covering a variety of LTVs and with both £0 and £999 fee options.

For house purchase and first time buyer tracker products, Nationwide revealed its rates will start from the bank rate plus 1.39%, while remortgage tracker products will start from the bank rate plus 1.19%.
 
Jordan added: “With two cuts in interest rates in just over a week, we took the prudent decision to carefully consider the impact on our mortgage range. However, as the UK’s second largest mortgage lender, it is important the society continues to offer members a range of options, while also ensuring we continue to maintain our high levels of service.”

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