Nationwide rate cut?

ajbell

Any one know if Nationwide have announced if they are passing on the rate cut on savings or mortgages?.

feisty1

Most lenders have announced cuts, nationwide will be up there amongst them. Rate cuts are not nearly as important as are loan to values & criteria, that's what we want to see changing to enable people to gain mortgages

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Trying_to_be_good

Nationwide's Base Mortgage Rate (BMR) tracks BoE base rate, + 1.49%, so will fall.

Their Regular saver account similarly tracks BoE base rate - not sure about other savings accounts.

alphason

Trying_to_be_good wrote: »

Nationwide's Base Mortgage Rate (BMR) tracks BoE base rate, + 1.49%, so will fall.

Their Regular saver account similarly tracks BoE base rate - not sure about other savings accounts.

According to Nationwides site the BMR is "guaranteed to be no more than 2% above the Bank of England base rate" Although the BMR currently sits at base +1.49%

The BMR is not guaranteed to fall much, base rate is now 4.5% + 2% = 6.5%, Nationwides current BMR is 6.49% only a 0.1% difference.

The banks that have already lowered the rate have only now moved to 6.5% form 7% from what I can see, Nationwide is already at 6.49% prior to the base rate drop. I would love to see my BMR mortgage drop but its no certainty.

alphason

No news of a drop yet, I think the longer they delay the less the drop will be, if at all.

confused31_2

It makes you laugh the bank of england rate drops to 4.5%, none of the banks pass it on to the customer and the people with savings get stung because the rate as dropped.

Theres no sign of the nationwide dropping their rate, what i would like to know was the rate drop, so that banks could make more money?? or was it to help the general public???

Nationwide have now started to charge on the loyaly scheme for existing customers, im just totally disheartened in all whats gone on with the banks, i think what we need is to get !!!!!! Turpin back.


confused

opinions4u

confused31 wrote: »

It makes you laugh the bank of england rate drops to 4.5%, none of the banks pass it on to the customer and the people with savings get stung because the rate as dropped.

Theres no sign of the nationwide dropping their rate, what i would like to know was the rate drop, so that banks could make more money?? or was it to help the general public???

Nationwide have now started to charge on the loyaly scheme for existing customers, im just totally disheartened in all whats gone on with the banks, i think what we need is to get !!!!!! Turpin back.


confused

Base rate went down LIBOR went up. Costs to bank go up.

Makes it very hard to sustain a rate cut for customers.

scotchio

I am disgusted that Nationwide still haven't dropped their mortgage rate, other banks have, but they, along with Abbey and HSBC still refuse to pass on the savings to the consumer. The Government are doing their best to dig the banks out of the mire they have got themselves into and lighten the load on the already over stretched British purse strings, but the banks continue to think about profiteering at every turn. When my Mortgage comes up for re-newel in a couple of years, I will not be returning to Nationwide. I'd rather pay an extra .1% to a bank that didn't try to screw me over in the hard times.
I know the banks troubles will effect me along the line somewhere, whether it be increased charges or less interest, but I have no sympathy for them.

Heyman_2

At the moment the BofE rate means very little to the banks - it used to go hand in hand with the LIBOR rate but that all changed with the turbulence of the last few months.

As such, it's not guaranteed that the banks will pass on the cut, in fact it's quite unlikely. In Nationwide's case they are operating within their own terms and conditions by guaranteeing that their SVR will never be more than 2% over the base rate.

I'm with Nationwide at the moment too, but feel lucky that you're not with Northern Rock or Chelsea BS, whose SVRs are 7.49% and 7.24% respectively (historically low, but still :eek: for some people)

spider31

From nationwide website :

Bank of England's base rate changes
Following a change in the Bank of England base rate, our tracker rates will change on the first day of the next month.
For further information on our mortgages, mortgage rates and how you can get a quote please follow this link to our mortgage homepage.
Article ID: 1490

This came up as I was just about to post them a message and it give this article as a suggested answer.

johnd72

It's all very well complaining about Nationwide (and quite rightly) but even the Govenment's own Bank (Northern Rock plc) is not prepared to reduce it's standard variable rate which stands at a whopping 7.49%!

Add to that their policy on not allowing existing customers to switch on to any of the new attractive rates being offered to "new" borrowers one can be forgiven in thinking that this may be the Govenments's "cash cow" to fund other nationalisations??