Nationwide to Freeze Interest Rates on Current Loan Deals

Mon, 05 Jan 2009

Nationwide Building Society has announced it will not pass any further interest rate cuts onto its borrowers on tracker mortgage deals. The bank inserted a clause in the contracts of 250,000 customers that states it doesn’t have to lower its rates should the Bank of England base rate drop below 2.75 per cent. Despite this, the bank agreed to lower rates when the interest rate fell to 2 per cent in December, but has stated that rates will be cut no further. The announcement, which follows calls by the government for lenders to pass on any cuts in full to consumers, only affects one sixth of Nationwide’s 1.5 million mortgage customers, and will not affect customers who have taken out a loan since November with a lower collar rate of 1 per cent.

A Nationwide spokesperson said, ‘ Savings rates are at an historic low and this move means we will not be forced into a position where we could have to cut savings rates more aggressively than we would otherwise like to.’ The announcement has made been in the midst of expectations that the Bank of England’s rate setting Monetary Policy Committee will cut interest rates once again at next week’s meeting.
add to favouritesnewsletterlink to this pagesend to friendpost comments

Link to this page

Copy and Paste the following HTML into your page.

 

 

Income Protection Insurance
Get an instant quote with the award winning company

Paying Too Much?

7 out of 10 people are paying too much for their mortgage. To find out if you're one of them click here or fill out a FREE no obligation enquiry form