Base rate mortgages and interest cut

willis

Hi everyone,
I have a base rate mortgage with Nationwide. Will my interest rate go down automatically because of the rate cut today? Or can Nationwide choose not to lower their rates?
And if it is reduced, when will this take effect from?


Thanks

herbiesjp

A base rate tracker will indeed drop following the cut

You will need to read the T&Cs of your lender to see how they effect the change

payless

Note for trackers ( tracks BofE base)

quotes from NW website

.

Following a change in the Bank of England base rate, our tracker rates will change on the first day of the next month.

ALSO NOTE

If the Bank of England base rate is 2.75% or less during the tracker period, the rate you pay will track a rate of 2.75% until the base rate rises back above this

For their Base Mortgage Rate (BMR)- ( which can of course lead to confusion) which most lenders actually call SVR ( standard variable rate ) then its down to their decision if to move in line with BoE but again NW say

guaranteed to be no more than 2% above the Bank of England base rate

TOPAZ_2

Nationwides current SVR is 6.49 % - so they can choose not to change thier SVR as this will now be at the max 2% mentioned above.

It is worth noting that those Banks reducing their SVR today are reducing it to 6.5%.

So while I am keeping my fingers crossed that they will reduce the SVR - I am not counting my chickens just yet

Topaz