SWINDON, 09-Aug-2016 — /EuropaWire/ — Following the decision by the Bank of England to cut the Bank Rate to 0.25%, Nationwide Building Society today announces that it will pass on the decrease in full to existing Base Mortgage Rate (BMR), Standard Mortgage Rate (SMR) and tracker mortgage customers, thereby lowering customers’ monthly payments.
No savings customers on variable rates will see a reduction of more than 0.25%, and the Society has worked hard to try to protect its customers who save regularly and who are building up a deposit to buy their first home. As a result, the Flexclusive Regular Saver, at 5%, the FlexOne Regular Saver at 3.5% and the Help to Buy ISA at 2% will be all be protected at their current rates.
Following the decrease in the BMR, SMR and tracker rates, Nationwide’s mortgage rates represent even better value for borrowers. The Society’s Base Mortgage Rate (BMR) remains one of the lowest revert to rates in the market. Estimates suggest that when compared with the standard variable rate charged by other major lenders, more than 500,000 BMR borrowers have benefited from a saving of around £1,100 on average over the last year alone.
The new revert to rates for residential mortgages are:
- Base Mortgage Rate (BMR), for mortgages reserved before 30 April 2009, will be 2.25% from 1 September 2016 (previously 2.5%).
- Standard Mortgage Rate (SMR), for mortgages reserved on or after 30 April 2009, will be reduced to 3.74% from 1 September 2016 (previously 3.99%).
Variable rates linked to the Bank Rate from Nationwide’s specialist lending subsidiaries, including The Mortgage Works, will also decrease by 0.25%.
Nationwide has worked hard to protect savers by supporting those products designed for people saving regularly and building up a pot of money for a deposit. As a result, savers in Nationwide’s Flexclusive Regular Saver, Regular Saver, FlexOne Regular Saver, Help to Buy ISA, Save to Buy and Save to Buy ISA will see no change in their existing rate.
No Nationwide customer will see a reduction in their existing variable rate savings rates of more than 0.25%. The Society’s existing customers will continue to benefit from a range of competitive savings accounts.
The changes, which have been carefully managed to balance the needs of both our borrowers and savers, will be effective from 1 September 2016*.
Chris Rhodes, Nationwide’s Executive Director for Group Retail, said: “During times of economic uncertainty, it’s important we continue to balance the needs of borrowers and savers. Our mortgage and savings rates continue to be some of the most competitive available.
“We have worked hard to help our customers through the period of record low interest rates by continuing to lend to those who need a mortgage, while also supporting hard-pressed savers over the medium to longer term.
“This is why we have taken the decision to support the rates on those products designed to help people buy a home of their own as well as protecting those savings products that encourage regular saving.
“We will continue to monitor our rates to ensure that they offer good value, while also reflecting market conditions.”
Notes to editors
Full details of Nationwide’s mortgage rates can be found at:
New rates will be available to view on www.nationwide.co.uk from 1 September 2016.
Existing Nationwide mortgage customers looking to transfer to a fixed or tracker rate will continue to benefit from a 0.10% rate discount compared to new customers. Mortgages with tracker floors may not see a reduction in rates.Nationwide Specialist Lending subsidiaries include The Mortgage Works (UK) Plc, UCB Home Loans Corporation Ltd, Derbyshire Home Loans Ltd, E-mex Home Funding Ltd. Existing TMW and UCB customers looking to transfer to a new rate will continue to be able to choose from the existing customer switcher ranges.
Full details of Nationwide’s savings accounts can be found at http://www.nationwide.co.uk/products/savings
*For affected variable rate accounts held or opened on or before the 11 August 2016. This excludes the Smart Account and Junior ISA, which will reduce in line with the base rate on 1 September 2016 regardless of when they are opened.
Nationwide is the world’s largest building society as well as one of the largest savings providers and a top-three provider of mortgages in the UK. It is also a major provider of current accounts, credit cards,ISAs and personal loans. Nationwide has around 15 million customers.
Customers can manage their finances in a branch, via the mobile app, on the telephone, internet and post. The Society has around 18,000 employees. Nationwide’s head office is in Swindon with administration centres based in Northampton, Bournemouth and Dunfermline. The Society also has a number of call centres across the UK.
In 2008, Nationwide’s members voted for at least 1% of the Society’s profits each year to be donated to good causes. This has allowed Nationwide to support thousands of charities and community projects across the UK. In 2012, the ‘Living on your side’ strategy was launched – a five year Citizenship strategy which brings to life Nationwide’s brand promise to be on the side of its members.
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SOURCE: Nationwide Building Society