Nationwide passes on some of interest rate cut
According to recent report the Nationwide Building Society is planning to pass on part of the latest base rate cut, although it will not be passing on the full rate cut to borrowers. Officials state that as of the start of November Nationwide will be reducing the interest rates on its standard variable rate mortgages by a third of a percent, taking the rate from 6.49% to 6.19%.
The Bank of England recently cut the base rate by 0.5% in a surprise move a day ahead of the scheduled Monetary Policy Committee meeting in October, hoping that the rate cut would help to boost the ailing economy and revive consumer confidence. A number of other lenders promised that they would be passing on the full 0.5% cut from November, but some have failed to pass on the full rate cut.
Nationwide officials have also said that new customers looking for an SVR mortgage will now have to deal directly with the lender rather than going through an intermediary such as a broker. They also said that new customers will have to put down a deposit of at least 25%, which could cause problems for first time buyers and those with little or nothing in the way of equity or savings to put down.
An official from Nationwide said that the building society was committed to providing “fair, affordable and sustainable mortgages”.
Amongst the other lenders that are passing on the full rate cut are Halifax, Lloyds TSB, the Woolwich, First Direct, Royal Bank of Scotland and NatWest. HSBC is leaving rates unchanged and Northern Rock will only be passing on a 0.15% cut.
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