Nationwide cuts mortgage BMR
Friday, 07 Dec 2007 08:32
In response to the Bank of England's base rate cut yesterday, Nationwide is reducing its base mortgage rate (BMR) by 0.25 per cent.
The BMR will by cut from 7.24 per cent to 6.99 per cent.
A spokesperson said: "This leaves it around 0.50 per cent lower than the standard variable rates of most other major high street lenders assuming that they also decrease their standard variable rates (SVRs) in line with the base rate."
"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 will be up to £12,000 over a 25-year term."
The change to the BMR and a cut to track mortgage rates will occur on January 1st 2008.
The cut to the BMR means monthly repayments on a £100,000 repayment mortgage will fall by £16.02 to £706.14.
On a Nationwide £100,000 interest-only mortgage repayments would fall £20.83 to £582.50.